EURUSD
Trading strategy: Small long at 1.5560 on break of 1.5540, stop at 1.5525, objective at 1.5620.
Yesterday’s rally to 1.5595 provides clues that there are good chances of a resume of the longer term uptrend against the dollar, thing that would bring the 1.6 zone back in focus. 1.5700 has to break first in order to signal a reversal. On the downside, minor support is seen at 1.5475 which is the 50% retracement of the 1.5360-1.5595 move. By breaking below 1.5475 the Euro may test lower support at 1.5430 then 1.5340-60. Current exchange rate is 1.5485 @06:16 GMT
Support levels: 1.5475, 1.5425, 1.5340-60 and 1.5280.
Resistance levels: 1.5500, 1.5550, 1.5600, 1.5620 and 1.5700.
Market sentiment: long-term : bullish, mid-term : bearish, short-term : bearish
Yesterday trading strategy: stand aside
AUDUSD
Trading strategy: Long at 0.9380, stop at 0.9345, objective at 0.9440.
The aussie managed to push on the 0.9500 resistance as expected but failed to break it and advance higher towards the record highs at 0.9540. The upside is favored but there’s risk of an extended correction towards 0.9350-0.9400 zone as price action suggests – already retracing 50 points since the failed attempt to find support into the 0.95 zone. Current exchange rate is 0.9458 @06:16 GMT
Support levels: 0.9430, 0.9400, 0.9360, 0.9340 and 0.9300.
Resistance levels: 0.9480, 0.9500-05 and 0.9540.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bearish
Yesterday trading strategy: Long at 0.9403, stop at 0.9373, first objective at 0.9453, second objective at 0.9503 : 0 (entry not reached)
USDJPY medium term update: current quote 104.97 @06:16 GMT
The trade has been closed at 104.45 (-35 pips) after the decline to 104.01 as mentioned on yesterday’s update. The upward trendline at 104.30 (now at 104.50) remained intact although there’s been a false breakout therefore the overall trend is still bullish. Since momentum is losing strength and the dollar shows signs of weakening across the board, it is probably better to avoid dollar bullish positions. A break of 105.70 would help rebuilding momentum and we will probably look for a long entry again.
