International Trading: Daily technical outlook

Daily technical outlook

Thursday, September 16, 2010 , Posted by Usman Ali Minhas at 11:47 PM

Quote of the day: You don’t get anything clean without getting something else dirty. — Cecil Baxter

EURUSD

Trading strategy: standing aside

Another week is almost over and the euro is up more than 3% against the U.S. dollar and it is currently flirting with 1.3150. The break above 1.2900 few days ago suggested further upside action – first short-term target being 1.3060 (August’s open) followed by 1.33 – last month’s top. Now that 1.3060 was reached, we can dare to look a bit higher – at 1.33. The 4-hrs charts are highly bullish as the euro went up almost vertically since Monday, so a corrective move shouldn’t come as a surprise. However, there’s no trend exhaustion sign yet so if you look to sell, you better wait or rather look at other pairs. Today’s economic calendar is lighter but the most notable data release is the Consumer Price Index in the U.S. later today. Current quote is 1.3134 @05:42 GMT

Support: 1.3100, 1.3020, 1.2900/30 and 1.2850
Resistance: 1.3150, 1.3200 and 1.3300
Market sentiment: long term – bearish, medium term – slightly bullish, short term – bullish, intra-day – bullish