Charts to Start the Week 7/23/12

Good morning. Euro continues its collapse, reaching a 11-year low against the Japanese yen and is trading near $1.200 against the dollar at time of writing. Current selling catalysts are the renewed talks of Greece eurozone exit and Spain worries.

Important events this week: Bernanke’s Speech, German IFO, New Home Sales, US Initial Jobless Claims, US GDP – see the Economic Calendar for details

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EURUSD

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

Potential trade strategy: to sell on pullback to 1.2150/70, initial stop above 1.2200, target at and below 1.200

EURUSD 4hrs 7-23-2012

EURUSD 4hrs 7-23-2012

GBPUSD

Cable is following EUR and other risk-sensitive pairs lower and support at 1.5530 is on the radar screen. If price pulls back from here, selling is likely to be triggered around 1.5620

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

Potential trade strategy: to sell on pullback to 1.5620, target at 1.5530

GBPUSD hourly 7-23-2012

GBPUSD hourly 7-23-2012

USDCHF

The dollar breached resistance at .9860 which opens the door for further gains towards parity, hence EURUSD to reach $1.200.

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

Potential trade strategy: to buy dips at .9860/80, target at 1.000

USDCHF 4hrs 7-23-2012

USDCHF 4hrs 7-23-2012

AUDUSD

Aussie dollar declined in risk-off trade, reaching support zone between 1.0250 and 1.0290 formed by recent top zone.

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

Potential trade strategy: to sell into rally at 1.0350, stop above 1.0400, target at 1.0150

AUDUSD 4hrs 7-23-2012

AUDUSD 4hrs 7-23-2012

AUDCAD

Support formed by recent top is only 20 pips away from current trading levels. Anyway, AUDCAD is less volatile than AUDUSD – daily ATR being around 40 pips, so it might take a while to reach support.

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

Potential trade strategy: to buy dips at 1.0450, target at 1.0500

AUDCAD 4hrs 7-23-2012

AUDCAD 4hrs 7-23-2012

EURJPY

The euro is testing multi-year lows against the yen as support at 96 was easily breached. There is no reason right now to consider buying this pair. Period.

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

Potential trade strategy: sell on minor pullbacks to 95.00-95.30, target below 94

EURJPY 4hrs 7-23-2012

EURJPY 4hrs 7-23-2012

have a great day!

One thought on “Charts to Start the Week 7/23/12

  1. Pingback: Euro Sell-Off Likely to Continue

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