Daily outlook and trading strategies 08-24-09

EURUSD

Trading strategy: long at 1.4265, initial stop at 1.4215, objective at 1.4345. Adjust stop to breakeven on +30 pips (at 1.4295) if reached

The trend line barrier into the 1.4230 region has been breached on Friday and the dollar fell to 1.4375 per euro, confirming that the correction from 1.4445 is finished and uptrend resumed. The short term sentiment is positive due to the daily close into the 1.43 region and the current bullish structure will remain intact as long as recent resistance into the 1.4230/70 region provides support. Current exchange rate is 1.4332 @05:55 GMT

Support: 1.4265/80, 1.4230 and 1.4170
Resistance: 1.4375, 1.4400 and 1.4440/50

GBPUSD

Trading strategy: stand aside

the 1.6300/50 region remains quite a viable region to buy on dips for tight objectives of 100-200 points. On a re-test of last week’s top side, look for a potential break above 1.6600 as it will confirm the end of current corrective cycle of 770-800 points which has been repetitive over the last 3 months. Short term sentiment is slightly bearish but 1.6600 may flip bias if breached. Current exchange rate is 1.6503 @05:55 GMT

Support: 1.6450, 1.6400 and 1.6350
Resistance: 1.6600, 1.6650/60 and 1.6750

USDJPY

Trading strategy: stand aside

Although intra-days lows below the 94.00 mark have been visited recently, we have yet to witness a full daily bar close below it. Last attempts against the South make it look suspicious although the downtrend is pretty strong, but as the dollar has been rejected by the 93 region – an upward swing may actually begin. A potential recovery on the USDJPY would also favor a rise in AUDJPY. A close below 94.00 will change the view, strengthening current bearish structure. Current exchange rate is 94.87 @05:55 GMT

Support: 94.40/50, 94.00 and 93.40/50
Resistance: 95.00/20, 95.60 and 96.00

AUDJPY

Trading strategy: stand aside

The Aussie found a stable support on the 77.00 handle on the last 3 attempts to slip lower and as we can see on the chart below, the reversal patterns suggest that the correction from 82.00 has finished. If so, momentum is likely to regain strength on the coming days, first resistance being set on the 80.00 handle. Although this region of 78 seem to provide a good buying opportunity, the conservative bulls may look for a daily bar closing above 80.00 to confirm the uptrend’s resumption. I am inclined to go long, targeting the 85.00 region but I will continue to watch the 77.00-78.00 region on a potential re-test of last week’s bottoms. The reversal signs are not too clear since price pushed on the lower side on 3 occasions – meaning that sellers have been in good control. Current exchange rate is 79.64 @05:55 GMT

Support: 78.70, 78.00 and 77.00
Resistance: 79.80/00, 80.40/50 and 81.00

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Post tags: AUDJPY, EURUSD, GBPUSD, USDJPY