Quote of the day:“The secret of getting things done is to act” ~ Dante Alighieri
Good morning. S&P’s downgrade of Italy derailed the gap fill and the euro is retesting yesterday’s low around $1.3600 while writing this. Things are likely to remain ugly for the eurozone in my opinion (and everyone’s except some politicians or few people believing in fairy tales), therefore my plan is either to sell on potential / short-lived rallies or more weakness such as a breakdown below last week’s open. As long as we hold below 1.39-1.40 former support zone, I really don’t see any reason to buy dips – maybe in other crosses, as there are a few currencies outperformed by the EUR these days. German Zew is the most important event in today’s economic calendar. Now let’s see what are some of the interesting charts today
EURUSD
Maybe 1.38 is a bit too far away, so it’s a good idea to keep an eye on the interim resistance around 1.3700 (yesterday’s top – see hourly chart below). Selling in that resistance zone is a plan to consider
Euro Vs US Dollar Chart Daily 9-20-2011
and the hourly chart:
Euro Vs US Dollar Chart Hourly 9-20-2011
EURGBP
Yesterday’s opening gap was filled and EUR is heading lower, next support coming around .8650. I remain bearish and will look for more selling opportunities especially if it breaks below .8650 later
Euro VS British Pound Chart 4hrs 9-20-2011
EURAUD
Speaking of crosses in which the EUR is a better performer than others – here’s one of them. Support at 1.3275/00 was confirmed and it seems there will be a new test of resistance around 1.3450. Buying on strength is probably the best bet right now, but very careful as we all know how fragile the EUR is.
Euro Vs Australian Dollar Chart Daily 9-20-2011
CADJPY
The breakout scenario I noted in my report yesterday is “on hold” as the JPY rallied across the board. I don’t say that I expect it to bounce from here, but in case it does – that breakout zone should be a good level to look for buying opportunities, as positive momentum should be quite strong once we get there.
Canadian Dollar Vs Japanese Yen Chart Daily 9-20-2011
Have a great day!
I took a Short on GBP / AUD at 1.5400 (psychological level) and also where those big bearish Pin bars and previous repeated resistance on the Daily chart are. So far so good but I have a gut feeling the price will reverse to the upside.
Your opinion would be very much appreciated. :)
it looks good, if you "survive" :) today's candle then you should end the day with a very nice profit and will be worth holding it.
Thanks for the advice!! Yes, it does look good atm but anything is possible in fx trading. I would like to keep it open for a few days/weeks as I'm gaining interest as well. ;)
your trade looks very good now,after few hours
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