Forex

EURUSD

Trading strategy: long at 1.4930, initial stop at 1.4870, objective at 1.5010. Adjust stop to breakeven on +30 pips (at 1.4960) if reached

Yesterday’s rally to 1.5045 opens the 1.5 territory and current pullback seem corrective, most likely caused by the session’s end losses in the equity markets. If the current pullback continues, intra-day support will be faced into the 1.4940/50 region which is backed by 1.4890/00 and 1.4820. While the euro maintains the bid-tone, fresh rallies may bring the 1.5100 handle in focus. Short-term momentum is bullish but the intra-day sentiment is slightly bearish but will turn positive on a potential break above 1.5025/45. Current exchange rate is 1.4992 @05:55 GMT

Support: 1.4940/50, 1.4890/00 and 1.4820
Resistance: 1.5045/50, 1.5100 and 1.5150


EURUSD 4hrs chart 10-22-2009

GBPUSD

Trading strategy: stand aside

Cable is conserving yesterday’s gains of 290 points and currently trades around the 1.6600 handle. Yesterday’s extended rally has pierced the significant resistance level of 1.6530, so my trading strategy to sell GBP at that level has been a bad idea, resulting in 50 points loss. Current uptrend is strong and the sterling does not show signs of correction, therefore September’s top at 1.6740/50 is on focus, followed by 1.7000. Potential pullbacks may find support into the 1.6500 and 1.6420/50 regions. Upside is favored for now. Current exchange rate is 1.6615 @05:55 GMT

Support: 1.6600, 1.6500 and 1.6420/50
Resistance: 1.6640/50, 1.6740/50 and 1.6800


GBPUSD daily chart 10-22-2009
USDJPY

Trading strategy: short at 92.10, initial stop at 92.60, objective at 91.40. Adjust stop to breakeven on +20 pips (at 91.90) if reached

The dollar is relatively stronger against the Yen and resistance into the 91.25 region is under pressure at the time of writing this. breaking above the said level would open 92.00/10 for a later test. Both short-term and intra-day studies are bullish and price action suggests further gains but 92 may limit gains and provide an important selling region. Current exchange rate is 91.28 @05:55 GMT

Support: 90.50/60, 90.00 and 89.00
Resistance: 91.25, 92.00/10 and 92.50


USDJPY daily chart 10-22-2009
Have a great day!