Quote of the day: Whenever I go down to Washington and meet with the SEC and complain to them that the industry is either over regulated or the burdens are too great they all start to roll their eyes, just like all of our children do when we talk about the good old days. — Bernard Madoff
EURUSD
Trading strategy: standing aside
The euro recovered from the 1.2150 region yesterday, as a result of SNB intervention in EURCHF, which soared 300 points. The rally was capped at 1.2430, where the former support trend line coming from 1.2233 provides intra-day resistance along with Tuesday’s top. Support starts at 1.2290/00, backed by 1.2250 and 1.2150. Current recovery may continue as the euro still has ample room to go up, being helped by short covering and CB interventions, as seen yesterday. Next upside barrier to look at, if the ongoing recovery extends further, comes at 1.2620 – 50% of 1.3095-1.2145. Short-term sentiment remains bearish while the pair holds below 1.28-1.29. Current exchange rate is 1.2339 @06:23 GMT
Support: 1.2290/00, 1.2250, 1.2200 and 1.2145/50
Resistance: 1.2430/50, 1.2500 and 1.2620
Market sentiment: long term – bearish, medium term – bearish, short term – bearish, intra-day – slightly bearish
- EURUSD hourly chart 5-20-2010
EURAUD
Yesterday’s break out above the downward channel formed on the daily charts resulted in a huge squeeze – the euro recovering 800 points so far, also breaking above last month’s top side. The large move provides a warning that massive short covering may be contagious and spread across the board, resulting in large swings in other pairs, too. The ongoing weakness of AUD along with the SNB intervention fueled the reversal move which doesn’t look exhausted yet.
- EURAUD daily chart 5-20-2010
Other setups
AUDJPY
- AUDJPY weekly chart 5-20-2010
AUDCAD
- AUDCAD weekly chart 5-20-2010
GBPUSD
- GBPUSD 4hrs chart 5-20-2010
Gold
- XAUUSD daily chart 5-20-2010
- XAUUSD 4hrs chart 5-20-2010
Have a good day!
