EURUSD
Trading strategy: long at 1.4205, initial stop at 1.4145, objective at 1.4275. Adjust stop to breakeven on +30 pips (at 1.4235) if reached
The euro continues to orbit around the 1.4300 handle so far being supported into the 1.4275/80 zone. Intra-day charts show some signs of downside action as a descending triangle has been formed, as seen on the hourly chart below. Therefore, if the triangle’s bottom will breach, 1.4200 may be aimed on the extended correction. Short-term sentiment is positive and won’t change as long as 1.4200 limits potential downside attempts. On the North region, resistance is formed by 1.4315 followed by 1.4350/75 and 1.4440/50 higher. Current exchange rate is 1.4285 @06:13 GMT
Support: 1.4275/80, 1.4230/50 and 1.4200
Resistance: 1.4315, 1.4350/75 and 1.4440/50
- EURUSD hourly 8-25-2009
USDJPY
Trading strategy: stand aside
Downside is under pressure again as the Yen recovered after the last test on the 95.00 handle on yesterday. Current dollar weakness extends below 94.00 and a daily close below this level will be highly bearish for the greenback. First intra-day support is seen at 93.45/50 followed by 93.00 and 91.70/00 lower. On a potential recovery, the same 95.00 level will provide resistance. A break above confirms the beginning of the corrective cycle. Current exchange rate is 93.90 @06:13 GMT
Support: 93.45/50, 93.00 and 91.70/00
Resistance: 94.50, 95.00 and 95.70/00
GBPUSD
Trading strategy: stand aside
Cable continues to push on the downside against the dollar, testing bids into the 1.6400 region while writing these lines. Important support is formed into the 1.6300/20 region by the rising channel’s bottom and while it is intact, the medium term bullish structure remains valid. As mentioned on yesterday’s report, over the last 3 months the corrective cycles have been limited by a 750-800 points range. So if the current bottom holds, the corrective cycle should end and 1.7 will get on focus. Keep an eye on the 1.6300 if we get down there. Current exchange rate is 1.6380 @06:13 GMT
Support: 1.6350, 1.6300/20 and 1.6200
Resistance 1.6480, 1.6600 and 1.6700
- GBPUSD daily 8-25-2009
