Quote of the day: “There is no security on this earth, there is only opportunity.” ~ General Douglas MacArthur
Good morning. Monday’s opening price which is providing resistance is currently being tested as the euro recovered some ground, but the daily charts remain bearish as long as there are several resistance layers above current trading zone. The 4-hrs charts are slightly bullish right now and we should keep an eye on this resistance range between 1.3350 and 1.3400:
Euro Vs US Dollar Chart 4hrs 10-5-2011
Current recovery looks like a normal correction, thus looking for new selling opportunities on signs of weakness is probably the best bet for now.
EURGBP
As seen below, the cross is approaching resistance around the 50% retracement value of last up leg. Daily charts are still bearish but in case of a break above this resistance at .8650, buyers may have a good reason to push it higher
Euro Vs British Pound Chart 4hrs 10-5-2011
EURJPY
The correction continues after the cross reached a 10-year low but it’s a fragile ground, so in case it retests support around 101.70, selling on the breakdown seems a good option. To the upside, resistance resides around 102.75 and 103.30 (61.8% of recent decline)
Euro Vs Japanese Yen Chart Hourly 10-5-2011
EURCAD
Ok, so the euro is still performing much better than I’ve been expecting it yesterday, when I thought that a retest of 1.3930/50 could provide a selling opportunity. The recovery is still strong but looking for a reversal around 1.4100 is tempting
Euro vs Canadian Dollar Chart 4hrs 10-5-2011
USDCAD
Speaking of CAD and the “opportunities” to catch a rocket, here’s another one:
US Dollar Vs Canadian Dollar Chart Daily 10-5-2011
have a great day!
I have a signal on the AUD/USD and USD/CAD for exiting long USD positions. Not yet a good signal for shorting USD, but certainly exiting any positions that have been working on long USD.
I'm long AUDUSD and short USDCAD since this morning, will add to the positions later if they continue to recover.
I really don't see any better trading opportunity right now
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