Good morning. Not much happened across the charts after yesterday’s important events – such as Fed’s interest rate decision, Draghi’s speech etc. The euro continued to weaken against the US dollar but managed to find support in the fib range highlighted below. Should this be a simple corrective decline? we’ll find out very soon
Market sentiment: intraday – bullish, short-term – mixed
Potential trade strategy: to hold a small long position, target at 1.3070
EURUSD 4hrs 10-25-2012
EURGBP
Support zone which was freshly formed a few days ago at .8100 is now providing intraday resistance as EUR failed to hold above.
Market sentiment: intraday – bearish, short-term – bullish
Potential trade strategy: to sell at .8110, target at .8010
EURGBP 4hrs 10-25-2012
USDCAD
Resistance at .9950 is intact as consolidation not far below continues. So a breakout is still in the cards
Market sentiment: intraday – neutral, short-term – slightly bullish
Potential trade strategy: to buy on rally above .9950, target at 1.0150
USDCAD daily 10-25-2012
AUDJPY
Interim resistance formed by the falling trendline which is connecting recent lower highs has been breached and AUD seems ready to test next battier, at 83.50
Market sentiment: intraday – bullish, short-term – bullish
Potential trade strategy: to hold long, target at 84.50
AUDJPY daily 10-25-2012
USDCHF
USD pulls back after the strong breakout above .9300, level providing support which is being tested now. I remain bullish on short-term basis, as I don’t really trust EURUSD’s recovery (opposite of USDCHF)
Market sentiment: intraday – bearish, short-term – bullish
Potential trade strategy: to hold long, target at .9400+
USDCHF 4hrs 10-25-2012
have a great day and happy trading
