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
4hrs:
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
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
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
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
have a great day!
