Quote of the day: The world is wrong side up. It needs to be turned upside down in order to be right side up. — Billy Sunday
EURUSD
Trading strategy: long at 1.3690, stop at 1.3630(1% risk), 1st objective at 1.3750, 2nd objective at 1.3810
The euro performed well yesterday, rallying out of the downtrend channel as per my expectations. Since it is holding gains just below the fib retracement region of 1.3780-1.3840, it looks like there’s more upside action to come, as a sell-off did not occur after the rally. Potential breach above 1.3850, specifically a daily bar close above that level, would confirm a turn of short-term momentum, opening the 2nd resistance layer of the last down leg from 1.4580 to 1.3530 – around the $1.40 handle, perhaps 1.4250 later this month. Intra-day sentiment is bullish and won’t be affected while immediate support coming around 1.3700 will hold on potential pullbacks. Buying dips into yesterday’s resistance zone of 1.3685/00 seems a good plan for now – if we get there. Current exchange rate is 1.3750 @07:00 GMT
Support: 1.3740, 1.3700, 1.3660/85 and 1.3600
Resistance: 1.3780/00, 1.3840/60, 1.3900 and 1.3950
Market sentiment: long term – bullish, medium term – bearish, short term – slightly bearish, intra-day – bullish
- EURUSD 4hrs chart 2-17-2010
NZDUSD
Trading strategy: small long at .7010, initial stop at .6950(0.5% risk), objective at .7150. Adjust stop to breakeven on +40 pips (at .7050) if reached
The kiwi dollar extended gains up to .7080 session highs, therefore my projected target into the .7150 region remains valid for the coming sessions. My strategy’s long at .7015 arguably missed the entry by 2 or 3 points but you get the idea. Short-term sentiment turned slightly bullish and the .7000/20 region may provide support on pullbacks for now. Below .6960 would resume downtrend. Upside remains favored, and if the kiwi dollar maintains its bid tone, advancing higher – the trend line coming from .7630 through January’s top side, now around .7350, will be a good objective. Current exchange rate is .7047 @07:00 GMT
Support: .7000/20, .6960/70 and .6900/30
Resistance: .7100, .7125/50 and .7200
Market sentiment: long term – bullish, medium term – slightly bearish, short term – slightly bullish, intra-day – bullish
- NZDUSD daily chart 2-17-2010
Have a great day!
