Downside pressure intensifies after the weak attempt to recover into the 1.49 territory and the 1.4850 support zone is being tested once again while writing these lines. In case of a break down below 1.4850, bearish objectives may be set into the lower half of 1.47. On the upside, a sustained break above 1.4950 is needed to resume uptrend. Today's European session has been rather quiet, the euro trading into a range of 60 points so far, hence there's enough room on both sides - about 80-100 points more to reach the daily average range. I cancel my plan to sell at 1.4965 as the euro failed to advance that high through th EU session and in case it does from now on, I don't think it will face enough selling power just a few hours before the week's close. Watch for a potential breakdown below 1.4850, though, it could be worth a few pips. Current quote is 1.4883 @13:30 GMT
EURUSD intra-day chart 11-13-2009
Trading strategy: small short at 1.6645, initial stop at 1.6705 (0.5% risk), objective at 1.6580. Adjust stop to breakeven on +30 pips (at 1.6615) if reached
Cable recovered some lost ground but it is having a hard time trying to break above 1.6690/00. As seen in the chart below, a hidden bearish divergence suggests a continuation of down trend, aiming back into the 1.65 region. If so, look for an extended decline below 1.6650 if 1.6700 remains intact. Current quote is 1.6686 @13:30 GMT
GBPUSD short-term chart 11-13-2009
Have a great weekend!