Quote of the day: “An optimist stays up until midnight to see the new year in. A pessimist stays up to make sure the old year leaves.” – Bill Vaughn
EURUSD
Trading strategy: standing aside
The break above 1.3180 was short as the euro was unable to sustain gains and declined to as low as 1.3083 where it found support – formed by last week’s bottom around 1.3080 and also the rising trend line connecting the higher lows since August. Cable was also dragged lower, following EURUSD, but the commodity currencies were good performers, along with the Swiss franc which remains a safe haven currency and trades around record levels against both USD and EUR. My expectation for the euro to hold above 1.3180 was wrong and I rather wait for a notable confirmation, not just a simple intra-day breakout, before considering any bullish scenarios. Speaking of current conditions – resistance is again formed at 1.3180/00, followed by the 1.3250 region, higher. On the daily charts we have a pin bar formed yesterday – suggesting further weakness. Current exchange rate is 1.3127 @08:35 GMT
Support: 1.3070/00, 1.3000/30, 1.2970 and 1.2900
Resistance: 1.3180, 1.3250/75, 1.3300/30 and 1.3400
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – slightly bullish
- EURUSD 1hr chart 12-29-2010
- EURUSD daily chart 12-29-2010
AUDUSD
- AUDUSD daily chart 12-29-2010
EURCHF
- EURCHF 4hrs chart 12-29-2010
Gold
- XAUUSD daily chart 12-29-2010
Have a great day!
