Thursday

Daily outlook in fewer words 12-10-09by Liviu

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I’m on a trip to Poland until Saturday and my Internet connectivity is slightly limited, so I can’t focus much on the charts. I’ll be short (on words) on this and tomorrow’s article.

EURUSD

Trading strategy: stand aside

Euro is back where it was 24 hours ago, pushing down on the 1.4700 handle. Yesterday’s recovery has been moderate and short-lived, as the euro failed to advance past the 1.4800 mark. Short term studies remain negative and 1.4850 is the first important barrier which has to be cleared in order to signal a potential reversal. While below the said level, expect more weakness to emerge, and a potential break down below 1.4700 to extend to the next important support – 1.4600. Intra-day sentiment is also negative. Current exchange rate is 1.4722 @06:55 GM

Support: 1.4650, 1.4600 and 1.4550
Resistance: 1.4750, 1.4835/50 and 1.4900

NZDUSD

Trading strategy: long at .7155, stop at .7105 (1% risk), 1st objective at .7205, 2nd objective at .7255

The New Zealand dollar rallied yesterday, following RBNZ decision to leave rates unchanged. The result of my strategy to buy at .7060, aiming for .7160 while keeping stop at break-even is +100 points. The rally above .7150 also signals a potential resume of the uptrend. We’ll see if the pair will manage to hold recent gains and maybe to break higher – .7300 being the next important upside barrier. I maintain my bullish view on NZDUSD. Current exchange rate is .7236 @06:55 GMT

Support: .7150/60, .7100, .7050 and .7000/15
Resistance: .7250/60, .7300 and .7400

Have a great day!