Monday

Daily outlook and trading strategies 08-10-09by Liviu

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EURUSD

Trading strategy: short at 1.4300, initial stop at 1.4360, objective at 1.4230. Adjust stop to breakeven on +30 pips (at 1.4270) if reached

The euro has extended losses on Friday’s breakdown below 1.4335, reaching intra-day lows at 1.4155, as the dollar recovered due to better than expected NFP results. Support at 1.4175 formed by the 61.8% retracement of the 1.4005-1.4445 upward swing has limited the losses and the euro currently tries to recover, climbing slowly towards the 1.4250 which is the first intra-day resistance. Above that, next barrier is seen at 1.4300/35 followed by 1.4400. On a potential resume of Friday’s decline, the euro may aim towards downside objective into the 1.4070 region formed by a rising trend-line extended through previous lows since June’s bottom at 1.3750. Short-term sentiment remains positive despite Friday’s decline which is pretty much corrective in nature. Current exchange rate is 1.4203 @06:05 GMT

Support levels: 1.4175, 1.4100 and 1.4070
Resistance levels: 1.4250, 1.4300/35 and 1.4400
Market sentiment: long-term : bearish, mid-term : bullish, short-term : bullish

Friday 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 : 0 (target/stop not reached)

AUDUSD

Trading strategy: stand aside

The Aussie dollar has recovered most of Friday’s losses, trading near the .8400 mark at the time of this writing. Intra-day resistance is formed around .8450 by a downward trend line covering recent tops. Intra-day sentiment is bullish and further gains towards .8450 and above are likely. On the lower zone, support is emerging at .8320/30 backed by .8255. Current exchange rate is .8395 @06:05 GMT

Support levels: .8320/30 and .8255
Resistance levels: .8450, .8500 and .8600
Market sentiment: long-term : slightly bullish, mid-term : bullish, short-term : bullish

Friday trading strategy: stand aside

EURCHF

Trading strategy: stand aside

1.5380 forms the first important resistance and a test is possible within the coming sessions, as a continuation of Friday’s rally. Both short-term and intra-day studies are positive. Above 1.5380, next objective is eyed at 1.5575 – 61.8% of the 1.6365-1.4300 decline. Friday’s trading range was 115 points – two times the average range of 55/60 points; we’ll see if the pair will manage to establish a normal range of 100 points per day. Current exchange rate is 1.5353 @06:05 GMT

Support levels: 1.5330, 1.5300, 1.5250 and 1.5100
Resistance levels: 1.5380/00, 1.5500 and 1.5575
Market sentiment: long-term : bearish, mid-term : bearish, short-term : bullish

Friday trading strategy: stand aside