Tuesday Breakout Trading Opportunities to Consider

Good morning. Aussie dollar is rising across the board after the RBA kept interest rates at 3.25% instead of cutting to 3%, as widely expected. The euro is losing ground on more Greece worries. The U.S. Election is definitely this week’s most important event. There are some nice breakout trading opportunities to watch in the coming sessions:

EURUSD

Euro breached below support at 1.2820 and there’s no sign of relief yet; therefore selling on minor intraday pullbacks to the upside is, in my opinion, the best thing to do in the coming sessions

Market sentiment: intraday – bearish, short-term – bearish
Potential trade strategy: to sell on pullback to 1.2820, target at 1.2620

EURUSD daily 11-6-2012

EURUSD daily 11-6-2012

EURGBP

Although the daily chart is obviously bearish, there are some clues on the 4hrs chart suggesting that a temporary bottom is being formed. If that’s about to happen, then buying on the rally above .8010 is a strategy to consider. Meanwhile, holding short should be just fine

Market sentiment: intraday – bearish, short-term – bearish
Potential trade strategy: to hold short while below .8010, target at .7900; but also considering a buying opportunity on the break above .8010

EURGBP 4hrs 11-6-2012

EURGBP 4hrs 11-6-2012

EURJPY

Euro declined over 100 points after the failed attempt to break above 104. I don’t see any reason to look for buying opportunities. Not now…

Market sentiment: intraday – bearish, short-term – bearish
Potential trade strategy: to sell on pullback to 102.70/00, target at 101

EURJPY 4hrs 11-6-2012

EURJPY 4hrs 11-6-2012

AUDUSD

There’s a buying zone formed at 1.0400 now after the breakout above the said resistance level, as a result of RBA’s interest rate surprise.

Market sentiment: intraday – bullish, short-term – bullish
Potential trade strategy: to buy on pullback to 1.0400, stop below 1.0340, target at 1.0500+

AUDUSD 4hrs 11-6-2012

AUDUSD 4hrs 11-6-2012

AUDJPY

Although a reversal candle was formed on Friday, Aussie is strengthening across the board so it’s time to reconsider the breakout scenario.

Market sentiment: intraday – bullish, short-term – bullish
Potential trade strategy: to buy on break above 83.50, target at 85+

AUDJPY daily 11-6-2012

AUDJPY daily 11-6-2012

USDCHF

The US dollar climbed above .9430 as EURUSD breached below 1.2820 (inverse correlation), so it might be a good idea to play this breakout opportunity

Market sentiment: intraday – bullish, short-term – slightly bullish
Potential trade strategy: to buy around current levels, short term target at .9600+

USDCHF daily 11-6-2012

USDCHF daily 11-6-2012

NZDUSD

NZDUSD, which follows the leading AUDUSD, is another pair joining the breakout watchlist, as next resistance is in focus at time of writing

Market sentiment: intraday – bullish, short-term – bullish
Potential trade strategy: to buy on break above .8280, target at .8400

NZDUSD 4hrs 11-6-2012

NZDUSD 4hrs 11-6-2012

have a great day

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