EUR: Up Ahead of ECB meeting

Good morning. EUR rallied across the board yesterday on news that ECB plans to buy unlimited debt and is holding gains near resistance levels ahead of today’s ECB meeting.

EURUSD

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

Potential trade strategy: to hold long or buy on the break of 1.2630/50, target at 1.28

EURUSD 4hrs 9-6-2012

EURUSD 4hrs 9-6-2012

EURJPY

EURJPY bounced off horizontal channel support line yesterday and reached the channel’s upper limit. There’s a good chance for a breakout above this resistance, so keep an eye on it.

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

Potential trade strategy: to buy on breakout above 99, short-term target at 101

EURJPY 4hrs 9-6-2012

EURJPY 4hrs 9-6-2012

AUDUSD

Aussie dollar recovered, following EUR yesterday and reached interim resistance at 1.0230, a selling level highlighted in my report yesterday. Maybe it’s not the best idea to sell now, ahead of ECB meeting, as the euro is likely to continue its recovery hence AUD to follow it higher.

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

Potential trade strategy: to sell at 1.0280, target at 1.0200.

AUDUSD hourly 9-6-2012

AUDUSD hourly 9-6-2012

USDCAD

USDCAD is another pair worth a look today, as resistance formed by the line connecting previous lower highs is under pressure. A plan to buy on the potential breach of this barrier is one thing to consider

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

Potential trade strategy: to buy on breakout above .9910/20, target at 1.00

USDCAD 4hrs 9-6-2012

USDCAD 4hrs 9-6-2012

have a great day

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