Wednesday

Daily analysis and trading strategies 2-24-10

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 24, 2010 – 6:39 am GMT | 2 Comments |

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Quote of the day: A great truth is a truth whose opposite is also a truth. — Thomas Mann

EURUSD

Trading strategy: small short at 1.3655, stop at 1.3695(0.5% risk), objective at 1.3575

Yesterday’s rally went out of steam ahead of 1.3700 where resistance is formed by the downward trend line coming from 1.4025 (February 3rd) along with the 61.8% of the last two weeks down leg from 1.3840 to 1.3445. The short-term momentum remains bearish as long as a key breakout is not validated by a daily bar close above 1.3850. Therefore, potential gains should face selling pressure into the intra-day resistance layers around 1.3600 then higher, at 1.3650 and 1.3700. Intra-day sentiment is negative as well as the minor gains from 1.3500 up to 1.3550 at the time of this report are corrective in nature. Key events today are The German GDP data release at 7:00 GMT and Fed Bernanke’s testimony at 15:00 GMT. Current exchange rate is 1.3542 @06:40 GMT

Support: 1.3500, 1.3445 and 1.3400
Resistance: 1.3600, 1.3650/60, 1.3700 and 1.3760/70
Market sentiment: long term – bullish, medium term – bearish, short term – bearish, intra-day – bearish

NZDUSD

Trading strategy: small short at .7015, stop at .7045(0.5% risk), objective at .6965.

The kiwi dollar reversed into last week’s top side around .7050 and also breached below intra-day bottoms formed by two rising trend lines coming from .6815 and .6890, respectively. Although it currently recovers some ground and re-entered last week’s range, downside pressure remains high due to yesterday’s accelerated sell-off in risk pairs. In case of an extended recovery, look for resistance to limit gains around the .7000 mark. On the south side, minor support comes around .6890/00 backed by a more notable barrier formed by the recent bottom at .6800/20. Current exchange rate is .6932 @06:40 GMT

Support: .6890/00, .6850 and .6800/20
Resistance: .6990/00, .7050/75, .7100 and .7150
Market sentiment: long term – bullish, medium term – slightly bearish, short term – neutral, intra-day – bearish

have a great day!