Tuesday

Tuesday 05.06.2008

by LiviucloseAuthor: Liviu Name: Liviu Flesar
Site: http://www.innerfx.com
About: I am an independant currency trader providing currency market analysis mainly for two reasons: 1. to improve my discipline, keeping a clear track record of my own thoughts, analyzing both my good and bad expectations on market moves; 2. sharing my thoughts with other traders, hoping they may benefit from my opinions and experience. I don't call myself a veteran or trading guru of some sort as there's a lot more I have to learn, a lot more I have to see and my 8 years experience into currency trading is not enough proof that I will be successful during the next 8 years. I dare to believe that my articles are useful to many traders from around the world and I strive to improve in my attempt to become a better and more accurate writer. innerfx.com is my own project, a blog about currency trading where I share my commentaries and market thoughts. The site has been launched to address the needs of other currency traders and also to keep a track record of my articles. I am not fully dedicated to currency trading because I want to diversify my knowledge, therefore I am involved in different areas.See Authors Posts (1405) on May 6, 2008 – 9:03 am GMT | Post a comment |

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EURUSD

Trading strategy: stand aside

The Euro continues to climb higher versus the greenback, now building support into the 1.55 zone. If the support at 1.5500 holds, then the Euro may put some pressure on the 1.5550 resistance and then higher to 1.5600-1.5620 on a successful break. Although medium term sentiment is bearish, the dollar selloff is emerging while the oil prices continue to trade into record highs. More upside seem favored for now but downside risk is high as the current downtrend is strong on the medium term studies and the current Euro recovery may be a simple correction. Current exchange rate is 1.5519 @06:00 GMT

Support levels: 1.5500, 1.5480, 1.5425, 1.5340-60 and 1.5280.
Resistance levels:  1.5550, 1.5620, 1.5650 and 1.5700.

Market sentiment: long-term : bullish, mid-term : bearish, short-term : bullish

AUDUSD

Trading strategy: Long at 0.9403, stop at 0.9373, first objective at 0.9453, second objective at 0.9503.

Yesterday’s rally signals an end of the corrective move into the 0.9300 zone where important support is formed by the upward trendline started on January 22th at 0.8510 extended through the next higher lows of March and April. The resistance at 0.9500 is strong but it may break soon. Upside bias of both intra-day and medium term studies are supporting a break of 0.9500 and 0.9540 higher but a correction seem possible first. Current exchange rate is 0.9454 @06:00 GMT

Support levels: 0.9400, 0.9360, 0.9340 and 0.9300.
Resistance levels:  0.9480, 0.9500 and 0.9540.

Market sentiment: long-term : bullish, mid-term : bullish, short-term : bullish

USDJPY medium term update: current quote 104.95 @06:00 GMT

Long entry triggered at 104.80 with initial stop at 103.80 as recommended on yesterday’s medium term outlook.
Support is now formed by 104.60 which is the 50% retracement of the 103.53-105.69 move. Good support also follows at 104.30-40 which is a daily trendline.

*** The position will be closed manually around 104.40-50 in case of a slip below 104.65 to 104.30 as such move may build negative momentum on the mid-term studies, cancelling our bullish view. On the upside, stoploss will be adjusted to breakeven on a rise to 105.30 ***