Daily analysis and trading strategies 01-06-10

 @ibtimes
on January 06 2010 2:51 AM

EURUSD

Trading strategy: stand aside

Yesterday's gains have been short lived as the intra-day break above the 1.4450 resistance has been a false one, hence not dealing with a notable break out on the daily charts - which was needed to confirm that the consolidation within the 1.43-1.4450 region has come to an end. While below the said resistance region, short-term sentiment mirrors euro's weakness across the board and downside pressure is increasing. Monday's gains have been mostly cleared and the 1.4300 handle is back in focus. My yesterday's strategy to buy at 1.4370 turned bad since the 1.4350/70 support region failed to hold, resulting in a 50 points loss. A break below 1.4300 would encourage further losses towards December's bottom into the 1.4215/25 zone, which is the next important support to watch - also formed by the 200 days SMA. Important economic events today are the ADP Nonfarm Employment Change at 13:15 GMT and the FOMC Meeting Minutes at 19:00 GMT. Intra-day sentiment remains bearish while below 1.4370. Current exchange rate is 1.4302 @07:20 GMT

Support: 1.4285/00, 1.4250, 1.4215/25 and 1.4150 Resistance: 1.4370, 1.4450, 1.4485/00 and 1.4550 Market sentiment: long term - bullish, medium term - slightly bullish, short term - slightly bearish, intra-day - bearish

EURUSD
EURUSD daily chart 1-6-2010

NZDUSD

Trading strategy: long at .7200, stop at .7160 (1% risk), 1st objective at .7240, 2nd objective at .7280

Not much has changed yesterday, the New Zealand dollar closing the day in-line with the daily open price at .7340 - but it is losing strength today, the .7300 support handle being under pressure at the time of writing this. Short-term sentiment remains positive due to recent gains starting two weeks ago. An extended correction may bring the lower support region of .7200 in focus - without affecting the current bullish structure. Intra-day sentiment is bearish and a break above .7350 is needed to resume uptrend and signal that the current decline has been corrective in nature. Current exchange rate is .7310 @07:20 GMT

Support: .7300, .7250/55 and .7200 Resistance: .7350, .7400 and .7500 Market sentiment: long term - bullish, medium term - bullish, short term - bullish, intra-day - bearish

NZDUSD
NZDUSD daily chart 1-6-2010

Have a good day!

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