EURUSD
Trading strategy: waiting for potential break above 1.3700 to consider a long position
The euro is approaching the trend line resistance extended from 1.3840, now around 1.3690. Yesterday’s gains were limited ahead of the said resistance level but the euro is conserving recent gains above 1.3600 so a new test is likely. To the downside, support is seen around 1.3550- formed by the median retracement of the last week’s upward move, backed by 1.3490. Intra-day sentiment is slightly bullish and the shor-term momentum will turn positive on break of 1.3690/00. Current quote is 1.3639 @07:15 GMT
Support: 1.3600, 1.3550, 1.3490/00 and 1.3440/50
Resistance: 1.3690/00, 1.3735/50, 1.3780 and 1.3840/60
Market sentiment: long term – bullish, medium term – bearish, short term – neutral, intra-day – slightly bullish
NZDUSD
Trading strategy: short at .7045, stop at .7105(1% risk), objective at .6945. Alternative in case of sell-off: to buy at .6900, stop at .6840(1% risk), objective at .7000
The RBNZ left interest rate unchanged at 2.5% and the kiwi dollar declined from fresh highs at .7095 – forming a doji candle on the daily charts – suggesting further weakness. Support comes on the former resistance trend line around .6950. Intra-day momentum is bearish while the short-term remains positive. Current quote is .6995 @07:15 GMT
Support: .6940/50, .6900/15, .6850 and .6800
Resistance: .7060, .6990/00, .7130/50 and .7200
Market sentiment: long term – bullish, medium term – slightly bearish, short term – slightly bullish, intra-day – bearish
AUDJPY
Trading strategy: in case of sell-off, will look to buy at 80.75, stop 79.75(1% risk), objective at 82.75
My yesterday’s strategy to buy at 82.60 played out nicely even though the 100 points target was not reached. Upside remains favored for now and the overnight pullback was probably corrective only. Minor resistance comes around 83.00, followed by 83.30/50 and 84.00. Support comes around 82.00 and a breach below would favor weakness to 80.30/50. Current quote is 82.76 @07:15 GMT
