Quote of the day: There are 10^11 stars in the galaxy. That used to be a huge number. But it’s only a hundred billion. It’s less than the national deficit! We used to call them astronomical numbers. Now we should call them economical numbers. — Richard Feynman
EURUSD
Trading strategy: small short at 1.3160, stop at 1.3240(0.5% risk), objective at 1.3010
The dollar lost some ground yesterday after the Fed has left interest rates unchanged, at 0.25%, and announced a new round of quantitative easing. Dollar’s losses were short-lived as former support around 1.3230 provided a stable resistance and the euro is back to 1.3100, where it found support before the Fed decision. Current decline is also driven by the EURJPY which is losing more ground since it breached below last week’s bottom around 112.70. More downside action is in the cards as the growth sensitive pairs are unlikely to draw major buying interest at this time. Although on a short-term basis current decline is corrective only, 1.3000 remains in focus and upside pullbacks will probably face selling orders into the 1.3180-1.3230 region. Above 1.3200/30, uptrend resumes – but look only for a clear break not some 10 minutes up spike. Current exchange rate is 1.3090 @05:57 GMT
Support: 1.3100, 1.3050 and 1.2970/00
Resistance: 1.3200/30, 1.3330/50, 1.3400 and 1.3500
Market sentiment: long term – bearish, medium term – slightly bullish, short term – bullish, intra-day – bearish
- EURUSD 4hrs chart 8-11-2010
More trading setups
AUDUSD
- AUDUSD 4hrs chart 8-11-2010
AUDCAD
- AUDCAD 4hrs chart 8-11-2010
USDJPY
- USDJPY daily chart 8-11-2010
AUDJPY
- AUDJPY daily chart 8-11-2010
Have a good day and happy trading!
Hi Liviu,
I have to hand it to you – your trading strategy on the EUR/USD pair for 8-11-10 was simply brilliant, and spot-on.
Had I not still been trading with funny money, I would have been doing tumbles down the corridor!
Cheers,
Ian
Hi Ian
but the market didn't reach the suggested selling point at 1.3160. It just continued to decline from 1.3100 where it was when I wrote the report… :)
I monitor innerfx for a few months and I noticed Liviu has many brilliant calls. I wished I had followed his suggestion from a couple of months to go long CHFUSD.
Liviu,
Do you monitor NZDJPY? The pair reached support at 60.930 and I am tempted to put a long trade on.
What is your advice?
Daniela
Hi Daniela
I look more at AUDJPY and EURJPY but they are highly correlated (over 90% correlation between AUDJPY and NZDJPY) so it's almost the same thing.
There are fears of intervention from BoJ because they don't like how strong the Yen is. Therefore, some correction (if not a full reversal yet) is quite possible. Personally I don't feel really comfortable to go against the wind but I am currently long against the JPY on EURJPY. Bought it in the morning and now it is at +75 pips with stop at b/e. Will hold it up to 200-300 pips if today's US open will favor it (i.e. equities to rally). So, yes.. i think it is worth going long NZDJPY but not holding it if it goes below 60.
It all depends on US equities since JPY pairs are the most sensitive to risk and the S&P sold off hard in the last 2 days. Was really hard to conquer >1120
(not so) later edit: sh*t happened on JPYs. I'm out of EURJPY at breakeven. Will look for another chance to go long if it catches some bids… but for now I rather stay away.
hello i really like your analysis and its perfect…….i wish i were to be with you always so you can teach me more because i am a new trader……i really have problem on when to buy and when to sell………i dont know how to study this and i will be very happy if you direct me a site to or you be emailing me……so we can start…..am now using the demo account and also have the real account too please help me out