Wednesday

Daily outlook and trading strategies 08-05-09by Liviu

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EURUSD

Trading strategy: long at 1.4305, initial stop at 1.4245, objective at 1.4395. Adjust stop to breakeven on +30 pips (at 1.4335) if reached

Yesterday’s view remains unchanged as the pair traded into a narrow range of 65 points, closing in-line with the opening price at .14410. On a potential pullback, the euro will face support at 1.4300 or lower in case of extended losses, at 1.4230 – near Friday’s bottom, from where the assault on the 1.4300 handle has been started. Short-term sentiment remains bullish while the intra-day price action suggests a retracement. Medium term objective is set into the 1.4620-1.4700 region. Current exchange rate is 1.4387 @06:05 GMT

Support levels: 1.4300, 1.4230/50 and 1.4180
Resistance levels: 1.4445/50, 1.4500 and 1.4620
Market sentiment: long-term : bearish, mid-term : bullish, short-term : bullish

Yesterday trading strategy: long at 1.4305, initial stop at 1.4245, objective at 1.4395. Adjust stop to breakeven on +30 pips (at 1.4335) if reached : 0 (entry not reached)

AUDUSD

Trading strategy: stand aside

Intra-day momentum is losing strength and became negative, favoring further downside price action towards the first support eyed at .8385 then lower, at .8330 which initially served as resistance. As long as the Aussie dollar holds gains above .8300, short-term momentum will remain intact and a corrective cycle would provide new buying opportunities. Current exchange rate is .8315 @06:05 GMT

Support levels: .8350/85, .8330 and .8255
Resistance levels: .8450, .8500 and .8600
Market sentiment: long-term : slightly bullish, mid-term : bullish, short-term : bullish

Yesterday trading strategy: stand aside

EURCHF

Trading strategy: long at 1.5235, initial stop at 1.5195, objective at 1.5285. Adjust stop to breakeven on +20 pips (at 1.5255) if reached

The euro has failed to hold gains near the 1.5300 mark after yesterday’s test and pulled back, testing support into the 1.5250 region at the time of this writing. However, short-term sentiment remains positive and uptrend is expected to resume after confirming support above the 1.5200 mark. Current exchange rate is 1.5257 @06:05 GMT

Support levels: 1.5230, 1.5170, 1.5100, 1.5050 and 1.5000/10
Resistance levels: 1.5275, 1.5300 and 1.5350
Market sentiment: long-term : bearish, mid-term : bearish, short-term : bullish

Yesterday trading strategy: stand aside