Good morning. Euro holds onto gains after yesterday’s recovery from $1.2185 – level reached after the fast plunge of 1 big figure in one hour.
Today’s important events: UK MPC Meeting Minutes, Bernanke’s Testimony, BoC Monetary Policy Report (see FX Calendar for details)
EURUSD
Recovery is likely to continue, at least that’s what the 4hrs and daily charts suggest
Market sentiment: intraday – bullish, short-term – bearish
Potential trade strategy: to sell into rallies towards 1.2380-1.2400, targeting 1.2200 and below. Another plan is to buy on strength above current top side around $1.2310
eurusd hourly 7-18-2012
Recovery continuation patterns are seen on both 4hrs and daily charts:
eurusd 4hrs 7-18-2012
daily chart:
eurusd daily 7-18-2012
USDCHF
Support at .9680 is still on the radar screen as yesterday’s rally was sold, so the intraday charts are rather bearish at time of writing.
Market sentiment: intraday – bearish, short-term – slightly bearish
Potential trade strategy: to buy dips around .9680/00 or sell on weakness below .9750/60
usdchf 4hrs 7-18-2012
GBPUSD
Yesterday’s recovery from 1.5555 suggests that buyers are in control and a potential breakout above the trendline resistance is likely.
Market sentiment: intraday – bullish, short-term – neutral
Potential trade strategy: to buy on break above 1.5665/70, targeting 1.5800
gbpusd 4hrs 7-18-2012
AUDUSD
Aussie dollar keeps climbing above 1.0250 and it seems it’s time to reach fresh monthly highs.
Market sentiment: intraday – bullish, short-term – bullish
Potential trade strategy: to buy dips or hold long while 1.0250 is intact, target at 1.0450
audusd daily 7-18-2012
hourly chart:
audusd hourly 7-18-2012
AUDCAD
Resistance at 1.0450 is under pressure, so this could be a good breakout trading opportunity.
Market sentiment: intraday – bullish, short-term – bullish
Potential trade strategy: to buy on break above 1.0450 with a target at 1.0600
audcad daily 7-18-2012
have a great day!
