Tuesday

Daily analysis and trading strategies 3-9-10

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 March 9, 2010 – 7:10 am GMT | 2 Comments |

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Quote of the day: Good ideas are not adopted automatically. They must be driven into practice with courageous patience. — Hyman Rickover

EURUSD

The downward trend line coming from 1.3840, now around 1.3700 – provided an intra-day reversal point again, limiting gains on last euro’s attempt to climb higher. Support on the 1.3600 mark has held thus far but the recovery from 1.3600 is not convincing yet. Slipping below 1.3600 would bring the fib support levels of last week’s range in focus – around 1.3550, level which held on Friday’s NFP market reaction. Not far lower than 1.3550, there’s the rising trend line barrier joining recent lows, now coming around 1.3485. Therefore, the whole range of 1.3445-1.3485 may provide a stable bottom if the sell-off continues. On a short-term basis, the charts remain in a bearish-to-neutral stance – break above 1.3700 being required to confirm a change, exiting the 13 days range. Current exchange rate is 1.3604 @07:10 GMT

Support:  1.3600, 1.3550, 1.3485/00 and 1.3440/50
Resistance: 1.3700, 1.3735/50, 1.3780 and 1.3840/60
Market sentiment: long term – bullish, medium term – bearish, short term – neutral, intra-day – bearish

USDCAD

Important medium term support is being challenged around 1.0250 – formed by the trend line coming from October’s 1.0205. Short-term sentiment is bearish but a potential bounce would provide a buying opportunity, targeting 1.0540/50 (monthly open) on first phase. 1.0330 is a minor resistance which capped the upside recently, so a sustained break above the said level could be a good confirmation for a swing long position. Current exchange rate is 1.0276 @07:10 GMT

Support:  1.0250, 1.0200 and 1.0100
Resistance: 1.0330, 1.0400, 1.00460 and 1.0500/15
Market sentiment: long term – bearish, medium term – bearish, short term – bearish, intra-day – neutral

NZDUSD

The kiwi dollar pulled back from recent top but support formed by the falling trend line, former resistance around .6950 may provide support, favoring some more gains towards .7050/60. Intra-day sentiment is slightly bearish but there’s enough room to the downside while an extended decline would still be treated as a corrective cycle. Current exchange rate is .6985 @07:10 GMT

Support: .6950, .6900/15, .6850 and .6800
Resistance: .7000, .7040/50 and .7150
Market sentiment: long term – bullish, medium term – slightly bearish, short term – slightly bullish, intra-day – slightly bearish

Have a great day!