EURUSD
Trading strategy: stand aside
The retracement started on Friday near the 1.4400 handle is currently extending below 1.4300 to as low as 1.4280 at the time of writing this. Intra-day sentiment is bearish and a break above 1.4325 is required to signal uptrend’s resumption. Support formed by the 61.8% of last up leg from 1.4200 to 1.4405 is being tested at 1.4280. Next intra-day support is formed by a rising trend line as seen on the chart below, near 1.4260. On a potential break down below that line, next objective could be 1.4200 and we will see if the euro will react on forming a double bottom into that region. Short term sentiment remains bullish. Current exchange rate is 1.4279 @05:53 GMT
Support: 1.4260, 1.4200 and 1.4150/85
Resistance: 1.4325/50, 1.4370/00 and 1.4445/50
- EURUSD 4 hrs 8-31-2009
GBPUSD
Trading strategy: long at 1.6110, initial stop at 1.6040, objective at 1.6230. Adjust stop to breakeven on +30 pips (at 1.6140) if reached
The resistance region started around 1.6385 which I mentioned on Friday’s report has provided a stable turning point on last intra-day rally and downside is under renewed pressure today. Looking at the daily charts, we can notice the indecision on both sides suggested by the Hammer candlestick on Thursday’s downside test and the Doji on Friday’s rally. Intra-day price action points towards the downside at the time of writing this article. Extended losses may reach 1.6100-1.6150 later today but 1.6100 will probably limit the downside. Current exchange rate is 1.6242 @05:53 GMT
Support: 1.6200, 1.6150 and 1.6100
Resistance: 1.6300, 1.6385 and 1.6430/50
- GBPUSD 4hrs chart 8-31-2009
- GBPUSD daily chart 8-31-2009
USDJPY
Trading strategy: stand aside
Since breaking below 94.00, the dollar continued to weaken Vs the Yen and fresh monthly lows have been reached into the 92 area. Next downside objective is formed by July’s bottom into the 91.75 region. On a potential recovery, look for resistance into the 93.50 region then higher at 94.00 which provided a stable support on several downside attempts. Current exchange rate is 92.82 @05:53 GMT
Support: 92.50, 92.00 and 91.75
Resistance: 93.00, 93.50 and 94.00
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