Daily analysis and trading strategies 10-06-09

EURUSD

Trading strategy: long at 1.4670, initial stop at 1.4620, objective at 1.4750. Adjust stop to breakeven on +30 pips (at 1.4700) if reached

The euro recovered on yesterday and continued to climb higher during today’s Asian trading session. Upside remains favored and a daily close above 1.4700 would confirm the end of the corrective cycle from 1.4845 to 1.4480. Intra-day sentiment is also positive and won’t change as long as 1.4650/70 will provide support on pullbacks. Since there aren’t any solid resistance levels until the ytd high at 1.4845, extended gains should be easily achieved if the support into the 1.4670/00 region will be confirmed. Current exchange rate is 1.4720 @05:30 GMT

Support: 1.4670, 1.4600 and 1.4500/20
Resistance: 1.4720/50, 1.4800 and 1.4820/45

EURUSD daily chart 10-6-2009

GBPUSD

Trading strategy: stand aside

Both intra-day and short-term charts show signs of indecision as cable fails to follow euro’s performance against the dollar nowadays. While the pound trades on a fragile ground and shows clear signs of weakness across the board, upside seem slightly favored and the pound is getting away from the support zone around 1.5800. However, it is far from trading into a safe zone so look for the same indecisive behavior as long as the pair holds below the 1.62-1.63 region. Current exchange rate is 1.5995 @05:30 GMT

Support: 1.5900, 1.5950 and 1.5800
Resistance: 1.6000, 1.6050 and 1.6130

GBPUSD daily chart 10-6-2009

USDJPY

Trading strategy: short at 89.60, initial stop at 90.10, objective at 88.80. Adjust stop to breakeven on +30 pips (at 89.30) if reached

Downside is under heavy pressure as the dollar currently trades only 100 points above last week’s low. Both short-term and intra-day studies are negative and the dollar doesn’t show any signs of recovery. On potential dollar gains, look for resistance into the 89.50/65 region then above, at 90. A minor support is formed by an upward trend line around 88.75, as seen on the chart attached below. Current exchange rate is 88.95 @05:30 GMT

Support: 88.75, 88.00/25 and 87.20/50
Resistance: 89.50/60, 90 and 90.50

USDJPY 4hrs chart 10-6-2009