Daily outlook and trading strategies 08-13-09

Trading strategy: long at 1.4240, initial stop at 1.4180, objective at 1.4340. Adjust stop to breakeven on +30 pips (at 1.4270) if reached

Support mentioned on yesterday’s report into the 1.4080-1.4100 region formed by a rising trend line has provided a stable reversal point on last downside test, the euro’s recovery being fueled by the equities and crude oil’s gains as a result of renewed optimism that the U.S. economy recovers. Intra-day price action suggests further climbing towards the important resistance on the 1.4300 handle, above yesterday’s top at 1.4250. A break above 1.4300 will confirm that the entire decline to 1.4085 was corrective. Intra-day sentiment is bullish and should remain intact as long as the pair doesn’t slip below 1.4200. Current exchange rate is 1.4253 @06:15 GMT

Support levels: 1.4200, 1.4150, 1.4085/1.4110 and 1.4000
Resistance levels: 1.4250, 1.4300, 1.4400 and 1.4450
Market sentiment: long-term : bearish, mid-term : bullish, short-term : bullish

EURUSD daily chart 08-13-2009 (click to enlarge)

AUDUSD

Trading strategy: stand aside

Minor intra-day resistance at .8400 formed by a downward trend line is on focus, followed by the .8470 top side higher. Next bullish objective which is expected to be reached within the next couple of days (or maybe weeks) stands into the .8650 region – formed by a rising trend line supporting the long term trend. Above .8650, the long term trend’s re-establishment will be confirmed. Current exchange rate is .8385 @06:15 GMT

Support levels: .8315, .8250 and .8175
Resistance levels: .8400, .8470 and .8600/50
Market sentiment: long-term : slightly bullish, mid-term : bullish, short-term : bullish

AUDUSD monthly chart 8-13-2009 (click to enlarge)

EURCHF

Trading strategy: stand aside

Support has been found on a rising trend line on yesterday and the euro is recovering against the Swiss franc, first important resistance being seen at 1.5360/80. If the daily trading range will be a bit larger, a break above the said resistance will probably occur within the next trading sessions. Else, the pair will lose strength and continue the look for direction. Current exchange rate is 1.5315 @06:15 GMT

Support levels: 1.5290/00, 1.5250 and 1.5100
Resistance levels: 1.5330, 1.5380/00 and 1.5500
Market sentiment: long-term: bearish, mid-term: bearish, short-term: bullish

• 10 Trading Lessons You Can Learn From Albert Einstein
• Breakout Trading
• Tea with Mike
• Interview With Steve From NoBrainerTrades.com
• How to Better Use the Internet for Trading and Personal Purposes