EURUSD
Trading strategy: stand aside
Support formed by the rising trend line coming from 1.4045 has provided a reversal point on yesterday’s downside test and the euro holds steady into the 1.4350 region, 50 points below last week’s top side. Above 1.4000, next upside barrier is emerging at 1.4045/50 which is also the yearly high. Since the euro holds steady into this elevated region, pips away from the mentioned high, it is quite obvious that it is only a matter of time until it will break higher, aiming towards fresh highs like 1.4620-1.4700. This week’s economic schedule is full of important events such as the ISM Manufacturing Index later today, the FOMC Meeting Minutes tomorrow and the EU Interest Rate Decision along with the US NFP release later this week. Short term sentiment is positive and will remain intact as long as 1.4200 provides support on potential pullbacks. Current exchange rate is 1.4352 @05:50 GMT
Support: 1.4290/00, 1.4250 and 1.4175/00
Resistance: 1.4400, 1.4445/50 and 1.4500
- EURUSD 4 hrs chart 9-1-2009
GBPUSD
Trading strategy: short at 1.6440, initial stop at 1.6510, objective at 1.6340. Adjust stop to breakeven on +30 pips (at 1.6410) if reached
On yesterday’s report I mentioned about the indecision suggested by the last two candlesticks. Well, yesterday’s candle would be 3′rd, as the behavior was similar – being rejected by the tested levels then returning into the day opening zone. Upside seem favored today – therefore keep an eye on 1.6375/00 which is an important upside objective. If market indecision is to remain valid, 1.6375/00 should cap, limiting gains before a pullback back into the 1.6250-1.6300 region. Personally I suspect a potential break above 1.6375/00 – to as high as 1.6440/50 which is the 61.8% of the last down leg from 1.6620. Short term sentiment is bearish, a breach above 1.6400/50 being required to confirm a trend reversal. Current exchange rate is 1.6300 @05:50 GMT
Support: 1.6250, 1.6150/80 and 1.6100
Resistance: 1.6375/00, 1.6440/50 and 1.6500
- GBPUSD 4hrs chart 9-1-2009
- GBPUSD daily chart 9-1-2009
USDCAD
Trading strategy: long at 1.0825, initial stop at 1.0775, objective at 1.0900. Adjust stop to breakeven on +30 pips (at 1.0855) if reached
It is quite interesting how the trend line from 1.0630 has provided both support and resistance throughout the entire month of August, as seen on the chart below. Downside is now under pressure since reaching the mentioned trend line on yesterday but the pair could deal with a parallel band lower, around 1.0835. If so, expect a bounce on 1.0800/35. Current exchange rate is 1.0919 @05:50 GMT
Support: 1.0900, 1.0835 and 1.0800
Resistance: 1.0950, 1.1000 and 1.1090/00
- USDCAD 4 hrs chart 9-1-2009
Have a great day and happy trading!
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