Quote of the day: “If you know how to spend less than you get, you have the philosopher’s stone.” ~ Benjamin Franklin
Good morning. Big day ahead for financial markets as all eyes are on Fed chairman Ben Bernanke – everyone wondering whether more quantitative easing will be announced or what rabbit can Bernanke pull out of his hat this time? The euro is trading higher against the buck today, as the European Union says ‘good progress’ is being made towards agreeing the release of bailout funds for Greece. Existing Home Sales is another important event on the economic calendar today.
Let’s put some charts on the screen and see what’s going on:
EURUSD
Intraday resistance around 1.3700 highlighted in my report yesterday was a good level to sell but only for a scalp down to 1.3650. I remain bearish on short-term basis and will keep an eye on the 1.38-1.39 resistance zone where next selling round could emerge. Last two daily candles are suggesting that the recovery is likely to continue for a while.
Euro Vs US Dollar Chart Daily 9-21-2011
and the hourly chart
Euro vs US Dollar Chart Hourly 9-21-2011
EURGBP
Consolidation continues and a bear flag formation is seen on the 4-hrs chart below. Key resistance is around .8730, so while we hold below – sentiment remains bearish. One plan to consider here is selling if/when the flag’s lower limit will be tested again. Secondary plan would be to look for a buying opportunity if price exits the formation to the upside – invalidating it.
Euro Vs British Pound Chart 4hrs 9-21-2011
EURAUD
Support around 1.3275 was confirmed once again yesterday and price bounced, although not convincing yet. However, while we’re still above 1.3275/00 and momentum remains bullish, it’s best to wait for a potential breakout and buy on strength. The opposite scenario should be considered if we break below 1.3275
Euro Vs Australian Dollar Chart Daily 9-21-2011
USDNOK
Interesting setup here as there are several signs of exhaustion after exiting the range recently. A potential break below 5.6 is worth a shot.
US Dollar Vs Norwegian Krone Chart Daily 9-21-2011
Have a great day and good luck trading!
USD / CHF broke recent resistance and there is a strong bullish candle developing on the Daily TF. What do you think about setting a Long just above resistance, say like psychological level 0.89500??
Thanks in advance. ;)
late reply here but answer is yes, long anything against CHF (hmm, except GBPCHF maybe?)
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