Midweek Charts of Interest 7/18/12

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

eurusd hourly 7-18-2012

Recovery continuation patterns are seen on both 4hrs and daily charts:

eurusd 4hrs 7-18-2012

eurusd 4hrs 7-18-2012

daily chart:

eurusd daily 7-18-2012

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

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

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

audusd daily 7-18-2012

hourly chart:

audusd hourly 7-18-2012

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

audcad daily 7-18-2012

have a great day!

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