Thursday Charts 7/26/12

Good morning. Dollar is trading slightly lower across the board today on speculation that the US Fed will expand stimulus. The euro made a few attempts to recover towards $1.22 but eventually failed and is still consolidating gains a few points below 1.2150 – where resistance zone starts. Important events today are: ECB Draghi’s speech and Initial Jobless Claims (see Economic Calendar)

EURUSD

Market sentiment: intraday – slightly bullish, short-term – bearish

Potential trade strategy: buying on strength above 1.2150/70 looks both risky and tempting. Another plan is to look for a selling opportunity around 1.2310

EURUSD hourly 7-26-2012

EURUSD hourly 7-26-2012

4hrs:

EURUSD 4hrs 7-26-2012

EURUSD 4hrs 7-26-2012

USDCHF

Dollar pulled back after flirting with parity but upside remains in focus. Support formed by recent top at .9865 holds (so far) but it all depends on EURUSD’s attempt to climb above 1.2170

Market sentiment: intraday – slightly bearish, short-term – bullish

Potential trade strategy: none (no need to put two eggs in the same basket)

USDCHF 4hrs 7-26-2012

USDCHF 4hrs 7-26-2012

AUDUSD

Aussie dollar bounced off support formed by the rising trendline connecting previous higher lows and trades comfortably above 1.0300 at time of writing. It looks quite bullish for now

Market sentiment: intraday – bullish, short-term – bearish

Potential trade strategy: to buy on minor pullback to 1.0300, target at 1.0450

AUDUSD 4hrs 7-26-2012

AUDUSD 4hrs 7-26-2012

USDCAD

Resistance around 1.0220 held and the US dollar pulled back to test support formed by the median retrace value of last up leg. But pressure is high and I for one doubt it will hold

Market sentiment: intraday – bearish, short-term – bearish

Potential trade strategy: to sell on weakness below 1.0120, target at 1.0050 and parity

USDCAD 4hrs 7-26-2012

USDCAD 4hrs 7-26-2012

AUDCAD

This cross just screams “breakout”

Market sentiment: intraday – bullish, short-term – bullish

Potential trade strategy: to buy on strength/breakout above 1.0510, stop below 1.0450, target at 1.0700+

AUDCAD daily 7-26-2012

AUDCAD daily 7-26-2012

have a great day!

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>