Quote of the day: There are plenty of ways to get ahead. The first is so basic I'm almost embarrassed to say it: spend less than you earn. - Paul Clitheroe


Trading strategy: stand aside

The euro moved slightly higher on yesterday on dovish comments from Ben Bernanke but failed to rally, facing resistance near 1.4900. Now that it is trading just below the rising trend line coming from 1.3830 - July's bottom, short-term bias is bearish and a potential continuation of the decline initiated last Friday may extend to the next bearish projections at 1.4700 and maybe 1.4600. A switch in direction requires a daily close above 1.4950 - confirming uptrend resumption. Intra-day sentiment is neutral - 1.4800 providing a fragile support, backed by 1.4750 and 1.4700. Current exchange rate is 1.4842 @06:56 GMT

Support: 1.4800, 1.4755 and 1.4700
Resistance: 1.4875/00, 1.4950 and 1.5000

EURUSD daily chart 12-8-2009


Trading strategy: short at 1.6535, stop at 1.6595 (1% risk), 1st objective at 1.6475, 2nd objective at 1.6435

Cable continues to push on the downside , not being able to hold gains above initial support around 1.6430 - as seen in the chart below. Notable support is seen lower, into the 1.6270-1.6325 region and it provides a viable target for now, while below 1.6430. Short-term sentiment is bearish. On the higher region, 1.6430 is followed by more barriers at 1.6475/00, 1.6540 and 1.6600. Current exchange rate is 1.6401 @06:56 GMT

Support: 1.6325, 1.6275, 1.6200 and 1.6130
Resistance: 1.6430, 1.6475/00, 1.6540/50 and 1.6600

GBPUSD 4hrs chart 12-8-2009


Trading strategy: long at .7060, initial stop at .7010 (1% risk), 1st objective at .7110, 2nd objective at .7160

The dollar is stronger against the NZD, too - bids around .7125 session low being tested while writing this. Important support is set around .7045/50 and I expect that barrier to limit losses for a while in case we get there. In the upper region, there's a long way until, eventually, short-term momentum would turn positive - sustained break above .7270/00 is needed to that. Current exchange rate is .7134 @06:56 GMT

Support: .7100, .7080, .7045/50 and .7000
Resistance: .7160, .7200 and .7270/00

NZDUSD daily chart 12-8-2009