Good morning. The market is likely to stay quiet until later today, when the ADP Nonfarm Employment Report and ISM Manufacturing Index will be released. The most important event is scheduled in the evening (GMT), and that is the Fed Interest Rate Decision followed by the FOMC Statement. (see Economic Calendar)
EURUSD
Euro is slowly recovering some of Friday’s losses when it pulled back after reaching $1.2390. First resistance starts a few pips above current trading level – at 1.2330 and it is followed by 1.2390/00. I think there is some more upside to be seen as Friday’s decline failed to gain negative momentum. Unless, of course, bad news keep coming from Europe.
Market sentiment: intraday – slightly bullish, short-term – bearish
Potential trade strategy: to buy on break above 1.2330, target at 1.24+
EURUSD daily 8-1-2012
4hrs chart:
EURUSD 4hrs 8-1-2012
GBPUSD
Cable pulled back yesterday but found bids around 1.5630, so the resistance line highlighted below is still valid.
Market sentiment: intraday – slightly bearish, short-term – bullish
Potential trade strategy: to buy on breakout above 1.5740/50, target at 1.6
GBPUSD daily 8-1-2012
USDCHF
Dollar is retesting support as EURUSD advanced higher towards recent top zone where it declined on Friday. A breakdown scenario is likely, hence a a nice selling opportunity
Market sentiment: intraday – bearish, short-term – slightly bullish
Potential trade strategy: to sell on breakdown below .9740, target at .9600
USDCHF 4hrs 8-1-2012
AUDUSD
Aussie dollars holds onto gains above 1.045-1.050 as minor pullbacks are bought.
Market sentiment: intraday – bullish, short-term – bullish
Potential trade strategy: to buy dips around 1.0450 or hold long while 1.0440/50 is intact, target at 1.08+
AUDUSD daily 8-1-2012
4hrs:
AUDUSD 4hrs 8-1-2012
have a great day!
