Tuesday

Daily outlook and trading strategies 08-11-09by 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

Downside stays under pressure, the euro closing lower for the 5′th consecutive day. However, except Friday’s sell-off, the daily losses are relatively small, which is a sign that this could be a corrective cycle and not a full reversal. Also, total points on this pullback from 1.4445 is 350 points, same size as the recent pullback started at 1.4200 on July 1’st and a bit larger than the pullback of July 28′th to 30′th – from 1.4300. If we are dealing with a recurrent pattern then it is about time to look for a direction switch and resume uptrend, aiming towards the top side at 1.4445. Important support into the 1.4080-1.4110 region has to remain intact for the reversal to occur within the coming sessions. Current exchange rate is 1.4138 @06:00 GMT

Support levels: 1.4110, 1.4080 and 1.4000
Resistance levels: 1.4200, 1.4250 and 1.4330
Market sentiment: long-term : bearish, mid-term : bullish, short-term : bullish

Yesterday 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 : 0 (entry not reached)

AUDUSD

Trading strategy: stand aside

A recovery is underway after reaching the downtrend trend line into the .8315/20 region but a break above .8400 is needed to re-establish uptrend and regain strength, aiming higher towards key long-term resistance around .8700. Upside is likely to remain favored within the coming days, if .8250 holds. Intra-day sentiment is negative but may turn positive on a potential break above .8375/00. Current exchange rate is .8350 @06:00 GMT

Support levels: .8315/20, .8250/55 and .8200
Resistance levels: .8375/00, .8450, .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

1.5335 provides intra-day support now and while the euro holds gains above it, extended gains to 1.5380 are likely. Both intra-day and short-term studies are bullish but the bad news is that the daily range remains very low, being only 28 points on yesterday. Currentexchange rate is 1.5344 @06:00 GMT

Support levels: 1.5330/35, 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

Yesterday trading strategy: stand aside