Charts to Start the Week

Good morning. Euro rallied but faced resistance after Friday’s NFP data release, which came at 114k vs. consensus of 113k. The unemployment rate dropped to 7.8%, fueling the conspiracy theories that the number was fake in order to aid President Obama’s re-election.

EURUSD

Market sentiment: intraday – bearish, short-term – slightly bullish

Potential trade strategy: to buy dips at 1.2950, target at 1.3050

EURUSD 4hrs 10-8-2012

EURUSD 4hrs 10-8-2012

EURJPY

The Japanese yen is strengthening across the board and there’s a good chance that support at 101 will be in focus soon

Market sentiment: intraday – bearish, short-term – bullish

Potential trade strategy: to buy dips at 101.10, target at 102

EURJPY hourly 10-8-2012

EURJPY hourly 10-8-2012

GBPCAD

The decline signaled by the reversal candle (highlighted below) continues and accelerated after the breach below support at 1.5850. I remain bearish on GBPCAD, expecting a test of 1.5600 soon

Market sentiment: intraday – bearish, short-term – bearish

Potential trade strategy:hold short or sell below 1.5850, target at 1.56

GBPCAD daily 10-8-2012

GBPCAD daily 10-8-2012

EURGBP

Resistance formed around .8100 by recent top side is again in focus, as EURGBP is currently trading only 30 points below. Buying on break higher is a plan to consider

Market sentiment: intraday – bullish, short-term – bullish

Potential trade strategy: to buy on break above .8100, target at .8250

EURGBP daily 10-8-2012

EURGBP daily 10-8-2012

NZDUSD

Support at .8200 is now breached and there’s no important barrier near current levels, so it’s likely that the decline will continue

Market sentiment: intraday – bearish, short-term – bearish

Potential trade strategy: to hold short while it holds below .8200, target at .8000

NZDUSD 4hrs 10-8-2012

NZDUSD 4hrs 10-8-2012

AUDUSD

Market sentiment: intraday – bearish, short-term – bearish

Potential trade strategy: to hold short while 1.0200 is intact, short-term target at .9800

AUDUSD daily 10-8-2012

AUDUSD daily 10-8-2012

GBPAUD

Current decline is probably corrective, providing new buying opportunities

Market sentiment: intraday – bearish, short-term – bullish

Potential trade strategy: to buy dips at 1.5750, short-term target at 1.6

GBPAUD 4hrs 10-8-2012

GBPAUD 4hrs 10-8-2012

have a great day!

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