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
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
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
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
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
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
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
have a great day!
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