EURUSD

Trading strategy: standing aside

The euro failed once again to take out the 1.2900 barrier yesterday, so the range bound action continues between 1.2780/00 and 1.2900. As we can see in the chart below, we have a bear flag formation and its lower limit is again under pressure at the time of writing. Downside remains favored on a short term basis and no change is in sight as long as 1.2900 caps the upside. It's also notable that most recent European trading sessions were euro bullish so if that's the case again, a recovery from 1.2800 should be underway. However, keep an eye on the downside, because the bear flag suggests more weakness and 1.2600 may be the next objective. Current exchange rate is 1.2806 @05:52 GMT

Support: 1.2780/00, 1.2740, 1.2600 and 1.2500
Resistance: 1.2900/20, 1.3000, 1.3100 and 1.3250
Market sentiment: long term - bearish, medium term - slightly bullish, short term - slightly bearish, intra-day - bearish

EURUSD

EURUSD 4hrs chart 8-20-2010

More trading setups

GBPUSD

GBPUSD
GBPUSD 4hrs chart 8-20-2010

USDJPY

USDJPY
USDJPY 4hrs chart 8-20-2010

AUDUSD

AUDUSD
AUDUSD 4hrs chart 8-20-2010

AUDJPY

AUDJPY
AUDJPY daily chart 8-20-2010

USDCAD

USDCAD
USDCAD daily chart 8-20-2010

Have a great day and weekend!