EURUSD
Trading strategy: small long at 1.2655, stop at 1.2585 (0.5% risk), 1st objective at 1.2705, 2nd objective at 1.2805
The euro rallied to $1.2738, the strongest since May, confirming that the decline to $1.2520/50 was corrective. Short-term sentiment remains bullish even though it was unchanged while the pair tested the lower side below 1.2600. While holding gains above 1.2500, trading comfortably near recent top at 1.2738, it’s quite obvious that more upside action is in the cards and shorting when reversal signs do not exist it’s a bad idea. Potential pullbacks will probably face intra-day support into the 1.2640/70 region. On the upside, an interim barrier is formed by the 50% of 1.3690-1.1875 at 1.2785. Next important resistance comes at 1.3000 which is both a psychological barrier and the 61.8% of the mentioned down leg from 1.3690 to 1.1875. Buying on dips or breakout are the best strategies for now. The Retail Sales at 13:30 GMT and FOMC Meeting Minutes at 19:00 GMT are today’s notable events in the economic calendar. Current exchange rate is 1.2712 @06:10 GMT
Support: 1.2640/70, 1.2600, 1.2550 and 1.2500/20
Resistance: 1.2740/50, 1.2785/00, 1.2900 and 1.3000
Market sentiment: long term – bearish, medium term – bearish, short term – bullish, intra-day – bullish
- EURUSD 4hrs chart 7-14-2010
- EURUSD daily chart 7-14-2010
GBPUSD
Trading strategy: standing aside
Monday’s breakdown below the rising trend line connecting last weekly bottoms proved to be false and cable is back into the upper territory, flirting with the 1.5225 resistance which is tested for 4th time in 3 weeks. Breakout seems imminent and 1.5500 will be the next objective if 1.5225/40 breaks. In case of a pullback, keep an eye on intra-day support around 1.5140 as it will probably provide a stable barrier. Current exchange rate is 1.5203 @06:10 GMT
Support: 1.5140/50, 1.5100, 1.5000, 1.4950 and 1.4850/80
Resistance: 1.5225/40, 1.5270, 1.5300 and 1.5500
Market sentiment: long term – bearish, medium term – bearish, short term – bullish, intra-day – bullish
- GBPUSD 4hrs chart 7-14-2010
More setups
AUDJPY
- AUDJPY daily chart 7-14-2010
AUDCAD
- AUDCAD daily chart 7-14-2010
EURCHF
- EURCHF 4hrs chart 7-14-2010
Gold
- Gold 4hrs chart 7-14-2010
Have a good day!
