Good morning. Euro declined yesterday after ECB’s Draghi disappoints markets, delaying actions. The week ends with another important event: the Non Farm Payrolls – consensus is 100k and 8.2% Unemployment; my guess is 60-70k
EURUSD
Resistance is now formed around 1.2250 (former support), where EUR is likely to face new selling pressure if current pullback continues.
Market sentiment: intraday – bearish, short-term – bearish
Potential trade strategy: to sell into strength to 1.2250, target at 1.2100
EURUSD hourly 8-3-2012
One big downtrend continuation candle has been formed yesterday, thank to the ECB.
EURUSD daily 8-3-2012
AUDUSD
Support around 1.0440 remains intact after yesterday’s test, but it’s worth to keep an eye on that level. A weak NFP figure should easily send it lower
Market sentiment: intraday – bearish, short-term – bullish
Potential trade strategy: to sell on weakness below 1.0440, target at 1.0300
AUDUSD 4hrs 8-3-2012
GBPUSD
Cable still holds only a few pips away from the support zone formed by the rising trendline which is connecting recent higher lows. There’s much pressure around these levels and that’s for sure
Market sentiment: intraday – bearish, short-term – bearish
Potential trade strategy: to sell on breakdown below 1.5500, target at 1.5400
GBPUSD daily 8-3-2012
USDJPY
The dollar is having a hard time trying to recover against the yen, as all recovery attempts are sold quickly. Selling into rallies is still the best thing to do
Market sentiment: intraday – bearish, short-term – bearish
Potential trade strategy: to sell on rally to 78.50, stop above 79, target at 77.60
USDJPY 15min 8-3-2012
S&P500
S&P collapsed yesterday as a result of ECB statement, but is now pulling back aiming toward former support at 1370. It all depends on what the NFP figure will be later today
SPX hourly 8-3-2012
Have a great day!
Aussie rally is expected but euro surge, a surprise