Trading strategy: small long at 1.3015 on break of 1.3000 (hourly bar close above 1.3000), stop at 1.2945, 1st objective at 1.3065, 2nd objective at 1.3165

The euro continues to hover into the 1.29-1.30 region, consolidating after last Thursday rally. The break above 1.3 seems very probable so we can look a bit higher for next objectives which are seen around 1.3250 – former support in March and April. In case of pullbacks, first intra-day support stands around 1.2890/00, backed by 1.2770. Buying dips or on break higher remain the best bets for now. Current exchange rate is 1.2978 @05:55 GMT

Support: 1.2890/00, 1.2830/50, 1.2770/00 and 1.2700 Resistance: 1.3000, 1.3100 and 1.3250 Market sentiment: long term – bearish, medium term – slightly bearish, short term – bullish, intra-day – bullish

EURUSD 4hrs chart 7-20-2010


Trading strategy: standing aside

Cable found support on last pullback to 1.5210 – median retracement of 1.4950 to 1.5470, level which also served as resistance two weeks ago. Short-term sentiment remains bullish especially while cable holds above 1.5200 and current down leg seems corrective. However, a return above 1.5350 is required to confirm that the corrective move is over. Meanwhile, it is also worth watching for a potential break lower, below 1.5200 – such move offering a short opportunity aiming to 1.4950/00. Current exchange rate is 1.5272 @05:55 GMT

Support: 1.5200/10, 1.5140/50, 1.5100, 1.5000, 1.4950 and 1.4850/80 Resistance: 1.5270, 1.5300 and 1.5470/00 Market sentiment: long term – bearish, medium term – bearish, short term – bullish, intra-day – bearish