Thursday

Daily technical outlook for Thursday 07-16-2009by Liviu

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EURUSD

Trading strategy: long at 1.4025, initial stop at 1.3965, objective at 1.4135. Adjust stop to breakeven on +30 pips (at 1.4055) if reached

The euro rallied to as high as 1.4135 on yesterday, following the rebound in crude and equities. Upside was capped by the 1.4135 barrier formed by the downside trend line started at 1.4340 extended through next top at 1.4200. Short term sentiment is positive since 1.4050 has been cleared and the current setup favors further upside action towards 1.4200, but the euro has yet to break 1.4135. Intra-day sentiment is bearish, which is normal as the current pullback is rather corrective in nature. While the support zone of 1.4015-1.4050 holds, the bullish structure will remain intact and a recovery would aim the 1.4135 barrier on first phase. Current exchange rate is 1.4083 @06:10 GMT

Support levels: 1.4050, 1.4015 and 1.3970
Resistance levels: 1.4135/50, 1.4200 and 1.4340
Market sentiment: long-term : bearish, mid-term : bullish, short-term : bullish

Yesterday trading strategy: small long at 1.3970, initial stop at 1.3920, objective at 1.4070. Adjust stop to breakeven on +30 pips (at 1.4000) if reached : 0 (entry not reached)

AUDUSD

Trading strategy: small long at .8025, initial stop at .7975, objective at .8095. Adjust stop to breakeven on +25 pips (at.8050) if reached

Aussie’s recovery continued and intra-day highs at .8055 have been reached on yesterday’s rally. Short term sentiment is bullish and the Aussie dollar may approach the key resistance at .8075 – formed by the downward trend line covering recent highs. Support at .7980 is being tested while writing this report. Below .7980, next support is emerging at .7925. While above former resistance at .7925 – the upside is favored and .8075 is likely to stay on focus. Current exchange rate is .7980 @06:10 GMT

Support levels: .7980, .7925 and .7870
Resistance levels: .8075/80, .8150 and .8200
Market sentiment: long-term : bearish, mid-term : bullish, short-term : bullish

Yesterday trading strategy: stand aside

EURCHF

Trading strategy: stand aside

The pair declined back below 1.5170, erasing most of recent gains. Daily sentiment is neutral as the euro fails to hold gains above 1.5170, therefore lacking direction. If it manages to overcome 1.5170 once again, next objective is seen at 1.5230. Current exchange rate is 1.5163 @06:10 GMT

Support levels: 1.5100, 1.5050 and 1.5000/10
Resistance levels: 1.5170, 1.5235/50, 1.5300 and 1.5350
Market sentiment: long-term : bearish, mid-term : bearish, short-term : neutral

Yesterday trading strategy: stand aside