Friday

Daily analysis and trading strategies 2-19-10

by LiviucloseAuthor: Liviu Name: Liviu Flesar
Site: http://www.innerfx.com
About: I am an independant currency trader providing currency market analysis mainly for two reasons: 1. to improve my discipline, keeping a clear track record of my own thoughts, analyzing both my good and bad expectations on market moves; 2. sharing my thoughts with other traders, hoping they may benefit from my opinions and experience. I don't call myself a veteran or trading guru of some sort as there's a lot more I have to learn, a lot more I have to see and my 8 years experience into currency trading is not enough proof that I will be successful during the next 8 years. I dare to believe that my articles are useful to many traders from around the world and I strive to improve in my attempt to become a better and more accurate writer. innerfx.com is my own project, a blog about currency trading where I share my commentaries and market thoughts. The site has been launched to address the needs of other currency traders and also to keep a track record of my articles. I am not fully dedicated to currency trading because I want to diversify my knowledge, therefore I am involved in different areas.See Authors Posts (1400) on February 19, 2010 – 7:03 am GMT | Post a comment |

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Quote of the day: Common sense ain’t common. — Will Rogers

EURUSD

Trading strategy: stand aside

The euro comes under high pressure once again against the dollar, eroding the recent bottom into the 1.3530/50 region as the Fed chose to bump up the discount lending rate by one-quarter point to 0.75 percent. Yesterday’s initial gains to 1.3650 were short-lived and intense selling emerged. The 61.8% retracement of last year’s full move from 1.2455 to 1.5145 – at 1.3485 was not a good option for buyers to come in, therefore the decline extended further and the 1.3400 level is in focus, not far away from current rates. Both short term and intra-day studies are bearish and potential gains should face resistance around 1.3550, then higher into yesterday’s top region around 1.3650. Selling rallies remains the preferred bet for now, as no notable sign of recovery is seen. Current exchange rate is 1.3468 @07:02 GMT

Support: 1.3440/50, 1.3400 and 1.3350
Resistance: 1.3500, 1.3550/60, 1.3600 and 1.3650/60
Market sentiment: long term – bullish, medium term – bearish, short term – bearish, intra-day – bearish

NZDUSD

Trading strategy: small short at .6990, stop at .7030(0.5% risk), objective at .6930. Stop at breakeven on +20 pips (at .6970) if reached

.6900 comes in focus now as the upward trend line support around .7000 was breached. Short-term studies turned bearish and no change is in sight while below former support .7000. My long at .7010 was closed at breakeven on the decline from .7050. If the NZ dollar recovers some ground – resistance around .6990/00 may cap the upside. Current exchange rate is .6942 @07:02 GMT

Support: .6900/30, .6850 and .6800/20
Resistance: 6990/00, .7020 and .7050/75
Market sentiment: long term – bullish, medium term – slightly bearish, short term – bearish, intra-day – bearish

GBPUSD

Have a great weekend!