Quote of the day: Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish. - John Quincy Adams

EURUSD

Trading strategy: small short at 1.2770, stop at 1.2840(0.5% risk), objective at 1.2650

The euro weakened across the board and breached below the bear flag formation against the dollar - printing a session low at 1.2662 on Friday. The uncertain outlook of the global economy will probably provide more downward bias on to growth sensitive currencies. Upside pullbacks should face resistance around 1.2770 - a bit far below 1.2900 which provided a very stable resistance last week. Short-term studies are in a bearish configuration and a break above 1.2900 is needed to switch bias to the upside. Meanwhile, upside rallies will probably be corrective, therefore selling on rallies or break downs are the 'better' options. Current exchange rate is 1.2713 @05:50 GMT

Support: 1.2650/60, 1.2600 and 1.2500
Resistance: 1.2770, 1.2850, 1.2900/20 and 1.3000
Market sentiment: long term - bearish, medium term - slightly bullish, short term - bearish, intra-day - bearish

EURUSD

EURUSD 4hrs chart 8-23-2010

More trading setups

USDJPY

USDJPY
USDJPY 4hrs chart 8-23-2010

GBPUSD

GBPUSD
GBPUSD 4hrs chart 8-23-2010

EURCHF

EURCHF
EURCHF daily chart 8-23-2010

USDCAD

USDCAD
USDCAD daily chart 8-23-2010

Have a great day!