Thursday Charts

Good morning. The euro recovered across the board but pulled back against the dollar yesterday, so the question now is whether current decline is corrective or not. Let’s take a look at a few interesting charts

EURUSD

Yesterday’s decline suggests that Euro’s recovery is corrective. See the daily chart below.

Market sentiment: intraday – bearish, short-term – slightly bullish
Potential trade strategy: to sell on rally to 1.3100, stop above 1.3170, target at 1.2850

EURUSD daily 4-18-2013

EURUSD daily 4-18-2013

Here’s the 4-hrs chart, where I highlighted the dynamic resistance range formed by the moving average lines. As long as it holds below 1.31, downside is favored 

EURUSD 4hrs 4-18-2013

EURUSD 4hrs 4-18-2013

GBPUSD

Cable also recovered in the past few days and managed to breach the resistance around 1.5230, which became support and is now being tested. My plan is to buy on strength, after confirming the support around 1.5230

Market sentiment: intraday – bearish, short-term – bullish
Potential trade strategy: to buy on rally above 1.5300, stop below 1.5230, target at 1.5600

GBPUSD daily 4-18-2013

GBPUSD daily 4-18-2013

EURAUD

Euro’s recovery against the Aussie dollar is healthy so far and I believe that 1.2550 will provide support on pullback, hence a buying opportunity

Market sentiment: intraday – bullish, short-term – bullish
Potential trade strategy: to buy dips on pullback to 1.2570, stop below 1.2520, target at 1.2800+

EURAUD daily 4-18-2013

EURAUD daily 4-18-2013

CADJPY

Former resistance around 94.30 is providing support and there’s a good chance that the CAD will hold above the said barrier.

Market sentiment: intraday – bullish, short-term – bullish
Potential trade strategy: to buy around current levels, stop below 94.00, target at 97.70

CADJPY daily 4-18-2013

CADJPY daily 4-18-2013

have a great day and good luck trading

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