Friday

Daily analysis and trading strategies 12-04-09by Liviu

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Quote of the day: The way to get started is to quit talking and begin doing. – Walt Disney

EURUSD

Trading strategy: stand aside

Downside is under pressure after the euro failed to breach higher, past 1.5145, on yesterday. The decline in equities favored the pullback into the 1.5050 support region and intra-day sentiment remains negative as long as 1.5100/15 is seen in the upper territory. Extended losses below 1.5045 may bring this week’s lows around 1.4975 in focus. As mentioned in my previous article – while a sustained break above 1113 in S&P500 does not occur – the euro will remain in-range below 1.5150. We’ll see if equities recover later today and also don’t forget that today is the NFP day. Anyway, I reckon that Fridays are usually dollar positive, although I don’t have statistics but this is what I noticed during the last years. Current exchange rate is 1.5052 @06:13 GMT

Support: 1.5045, 1.5000, 1.4950/75 and 1.4850/00
Resistance: 1.5100/15, 1.5145/50 and 1.5200

GBPUSD

Trading strategy: small long at 1.6400, stop at 1.6330 (0.5% risk), 1st objective at 1.6450, 2nd objective at 1.6540

The break out above the falling trend line coming from 1.6870 has been short-lived and downtrend resumed – bids into the 1.6530 being tested at the time of writing this. In case of a break down below 1.6500 – 1.6400 will be the next objective. Both short-term and intra-day studies are bearish and a break above 1.6700 is needed for momentum to switch direction. Current exchange rate is 1.6527 @06:13 GMT

Support: 1.6500/10, 1.6400 and 1.6280/00
Resistance: 1.6600, 1.6650 and 1.6700

Have a great day! Maybe I’ll post an update later today.