• Euro continues to surge; takes out 1.4300
• Dollar/Yen remains locked in sideways trade
• Cable breaks above 1.6500 barriers; 1.6675 next
• Dollar/Swiss finally posts fresh 2009 lows for first time since January

06-02-2009DailyClass01

EUR/USD



EUR/USD - Monday's bearish doji-like close has been negated and the market has once again managed to surge to fresh 2009 highs beyond 1.4300. Daily studies however remain overbought and now well above 70 on the RSI which warns of a pullback over the coming days. We had attempted a short trade on Monday but the market easily took us out at 1.4260. From here we will stand aside and await another opportunity to establish a counter-trend short. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.

Level

Resistance

Details

1.4435

R3

12/17 high

1.4365

R2

12/29 high

1.4315

R1

6/2 09 high

Level

Support

Details

1.4165

S1

5/29 high

1.4100

S2

6/1 low

1.4005

S3

10-Day SMA


USD/JPY



USD/JPY - The market has been well offered over the past several weeks but setbacks have now stalled out just shy of next key support by 93.55 from March, which guards against the critical 87.15 multi-year trend lows. We have seen a contraction in volatility over the past few sessions which suggests that a break out looms. However, the direction is unclear at this point with a push above 97.25 or back under 93.85 required for a clearer bias. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.

Level

Resistance

Details

97.85

R3

5/12 high

97.25

R2

5/28 high

96.65

R1

6/2 high

Level

Support

Details

95.35

S1

6/2 low

95.00

S2

5/29 low

94.45

S3

6/1 low


GBP/USD



GBP/USD - The market continues to extend gains in unrelenting fashion to stretch our short trade out of the money. Nevertheless, daily studies remain highly overextended as evidenced by the above 80 daily RSI reading and the risk fro here are for limited gains, in favor of a more significant corrective pullback. A break back under 1.6325 is required to shift focus back on the downside. Next key topside resistance comes in by 1.6675. Position: SHORT @1.6407 FOR AN OPEN OBJECTIVE, STOP @1.6687.

Level

Resistance

Details

1.6675

R3

10/30 high

1.6600

R2

Figure

1.6585

R1

6/2 09 high

Level

Support

Details

1.6325

S1

6/2 low

1.6200

S2

5/29 high

1.6160

S3

6/1 low


USD/CHF

USD/CHF - After finally trading down to fresh 2009 lows (first time since January) and breaking below 30 on the daily RSI, the market could be looking for a much needed and healthy corrective rally. However, the bear trend has been quite intense and we will need to see a break back above 1.0745 for confirmation of short-term basing. In the interim, next key support comes in by 1.0485 which guards against the key 1.0370 trend lows from late December. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.

Level

Resistance

Details

1.0860

R3

5/29 high

1.0805

R2

5/28 low

1.0745

R1

6/2 high

Level

Support

Details

1.0595

S1

6/2 low

1.0485

S2

12/30 low

1.0370

S3

12/29 low

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com. If you wish to receive Joel's reports in a more timely fashion, e-mail jskruger@fxcm.com and you will be added to the distribution list.

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