EURUSD
Trading strategy: standing aside
The euro starts the new month under pressure, losing against its major counterparts. Support at 1.2150 held but so did the resistance at 1.2300 – formed by the 50% retracement of last down leg from 1.2465 to 1.2150. Lower highs and lower lows have been formed on the 4-hrs charts since reaching 1.2465 last week, therefore the preferred scenario is to sell on rallies as long as they do not overcome the 1.2390 region. Break down below 1.2150 would confirm that the euro is not into a corrective phase so keep an eye on the said downside barrier if it will be tested again. Employment will be the dominant theme in today and tomorrow’s economic calendar. Current exchange rate is 1.2216 @05:50 GMT
Support: 1.2200, 1.2150, 1.2100 and 1.2000
Resistance: 1.2300, 1.2360 and 1.2400
Market sentiment: long term – bearish, medium term – bearish, short term – slightly bullish, intra-day – bearish
- EURUSD 4hrs chart 7-1-2010
GBPUSD
Trading strategy: small short at 1.5020, stop at 1.5090 (0.5% risk), 1st objective at 1.4960, 2nd objective at 1.4800
1.5000 was breached but cable’s decline is moderate (so far). 1.4900 provides intra-day support, backed by a more notable barrier at 1.4800. Upside pullbacks may provide new selling opportunities as more downside is currently favored as long as 1.5000-1.5050 limits gains. Short-term sentiment remains bullish while above 1.4800. Current exchange rate is 1.4924 @05:50 GMT
Support: 1.4900, 1.4850, 1.4800 and 1.4700/20
Resistance: 1.5000/20, 1.5100/20, 1.5200 and 1.5250/70
Market sentiment: long term – bearish, medium term – bearish, short term – bullish, intra-day – bearish
- GBPUSD 4hrs chart 7-1-2010
Other setups
EURGBP
- EURGBP 4hrs chart 7-1-2010
EURCHF
- EURCHF 4hrs chart 7-1-2010
Gold
- Gold 4hrs chart 7-1-2010
Have a great day!
