Thursday

Daily outlook and trading strategies 08-06-09by Liviu

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EURUSD

Trading strategy: long at 1.4185, initial stop at 1.4125, objective at 1.4285. Adjust stop to breakeven on +30 pips (at 1.4215) if reached

The pair trades quietly ahead of ECB’s Interest Rate Decision later today, at 12:45 GMT, which is expected to remain at 1%. First support is formed into the 1.4335/50 region by both the previous yearly top set on July and an upward trend channel’s upper band – easily noticed on the daily charts. As long as the euro holds gains above 1.4335/50, the upside will remain under pressure and extended gains should target 1.4620 and 1.4700 within the coming days. Intra-day sentiment is neutral at the time of this writing due to the weak market activity but large move are possible later today. Current exchange rate is 1.4402 @06:10 GMT

Support levels: 1.4335/50, 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

The Aussie dollar trades comfortably around .8435, near recent top at .8470. Two important support levels are seen at .8385 then a bit lower, at .8330. Intra-day studies are slightly bullish and the short-term bullish structure is strong. .8690/00 is the next objective – formed by a rising trend line on the monthly charts, started on 2001. Above that line, the long term trend will be re-established. Current exchange rate is .8432 @06:10 GMT

Support levels: .8350/85, .8330 and .8255
Resistance levels: .8470, .8500 and .8600
Market sentiment: long-term : slightly bullish, mid-term : bullish, short-term : bullish

Yesterday trading strategy: stand aside

EURCHF

Trading strategy: stand aside

Upside is under pressure as the euro tries to overcome the 1.5300 resistance at the time of this writing. Above that, next objective is 1.5350 and 1.5380. Upside is likely to remain favored for now and potential pullbacks will face support at 1.5265/75 and 1.5300. Both intra-day and daily studies are bullish. Current exchange rate is 1.5303 @06:10 GMT

Support levels: 1.5230, 1.5170, 1.5100, 1.5050 and 1.5000/10
Resistance levels: 1.5300, 1.5350, 1.5380/00
Market sentiment: long-term : bearish, mid-term : bearish, short-term : bullish

Yesterday 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 : 0 (entry not reached)