Daily outlook and trading strategies 08-17-09

EURUSD

Trading strategy: stand aside

Last failed attempt against 1.4300 on Friday negates the end of the corrective phase and the euro is back into the lower side, testing bids into the 1.4130 region at the time of writing this. As seen on the chart below, trend line support into the 1.4125 zone is the first important level to watch today. A potential breakdown could open 1.3990/00 for a test, maybe later today. Both short-term and intra-day studies show prominent weakness and 1.4250 upside barrier has to be cleared to resume uptrend. My long position has been closed on breakeven on Friday’s sell-off and I look to buy on the dips if it goes into the 1.3900-1.4000 region. Current exchange rate is 1.4135 @06:15 GMT

Support levels: 1.4125, 1.4085 and 1.3980/00
Resistance levels: 1.4200, 1.4250 and 1.4300/25

AUDUSD

Trading strategy: long at .8065, stop at .8015, objective at .8135. Adjust stop to breakeven on +30 pips (at .8095) if reached

Last week’s bottom @.8180 is on focus today and price action suggests further weakness, all the way towards the .8030-.8085 support zone indicated in the attached chart. Negative momentum of both intra-day and short-term charts favors the bearish scenario. On the upper zone, a break of .8320 is required to change current bias and resume uptrend. Current exchange rate is .8205 @06:15 GMT

Support levels: .8175, .8100, .8085 and .8030
Resistance levels: .8250, .8320 and .8420

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Post tags: AUDUSD, EURCHF, EURUSD