Trading strategy: small long at 1.2640, stop at 1.2570 (0.5% risk), 1st objective at 1.2700, 2nd objective at 1.2760
The dollar continued to weaken across the board as equities are recovering - the S&P 500 closed up 1%. ECB President Trichet also helped the euro by saying that the economic activity in the Euro Zone is strengthening and the latest data is very good - german numbers, in particular. The euro trades around $1.2684 at the time of writing, maintaining a bid tone near today's open and yesterday's fresh top at $1.2710. More upside action is in the cards on a short-term basis and while we don't see a drop below $1.23, odds are high that the sentiment will turn positive on medium-term basis, too - a break above $1.3 being required. Intra-day pullbacks will probably face buyers into the 1.2630/50 region, limiting losses and keeping the 1.27 region in focus. Current exchange rate is 1.2682 @06:00 GMT
Support: 1.2630/50, 1.2560, 1.2500/20, 1.2465, 1.2400 and 1.2300 Resistance: 1.2700/10, 1.2750 and 1.2800 Market sentiment: long term - bearish, medium term - bearish, short term - bullish, intra-day - bullish
- GBPUSD 4hrs chart 7-9-2010
- USDCAD 4hrs chart 7-9-2010
- EURAUD 4hrs chart 7-9-2010
- AUDJPY daily chart 7-9-2010
Have a great weekend!