Intra-day update on EURUSD and GBPUSD 11-13-09

EURUSD

Trading strategy: stand aside

Downside pressure intensifies after the weak attempt to recover into the 1.49 territory and the 1.4850 support zone is being tested once again while writing these lines. In case of a break down below 1.4850, bearish objectives may be set into the lower half of 1.47. On the upside, a sustained break above 1.4950 is needed to resume uptrend. Today’s European session has been rather quiet, the euro trading into a range of 60 points so far, hence there’s enough room on both sides – about 80-100 points more to reach the daily average range. I cancel my plan to sell at 1.4965 as the euro failed to advance that high through th EU session and in case it does from now on, I don’t think it will face enough selling power just a few hours before the week’s close. Watch for a potential breakdown below 1.4850, though, it could be worth a few pips. Current exchange rate is 1.4883 @13:30 GMT

GBPUSD

Trading strategy: small short at 1.6645, initial stop at 1.6705 (0.5% risk), objective at 1.6580. Adjust stop to breakeven on +30 pips (at 1.6615) if reached

Cable recovered some lost ground but it is having a hard time trying to break above 1.6690/00. As seen in the chart below, a hidden bearish divergence suggests a continuation of down trend, aiming back into the 1.65 region. If so, look for an extended decline below 1.6650 if 1.6700 remains intact. Current exchange rate is 1.6686 @13:30 GMT

Have a great weekend!

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Post tags: EURUSD, GBPUSD