Wednesday 12 October 2011

Continue to be USD bear

I will post charts later but in the mean time this is what charts are telling me.

Currently I am a USD bear but tactically and in spite of the breakouts on 4 charts I see increasing chances of short term USD strength. In terms of trading it means, reduce USD shorts. Later I will review potential USD short levels where re-establishing USD shorts gives us good risk-rewards.

AUD - intraday price broke thru the daily neckline but with need confirmation on daily basis: AUD should close above the neckline. Then it would be very bullish. However, you may think about taking 50% of profits NOW and the rest at at 1.0170 because strong resistance is on the way and AUD likely to test the neckline before going further up. Stop loss should be moved to 0.9900

EUR - I am not sure it will overcome downtrending 200MA on 4H chart. So, I am halving it. Should it go down, it should be supported at 1.3664, potential buy EURUSD level.

GBP - I re-established long at 1.5650, just above the swing high on 1H chart but GBP is about to meet its 200MA at 1.5785 on 4H chart. My bet like in the case of EUR, it will lose the first fight. Then, it may go back to 1.5675-80, our buy area. Therefore, I am happy to trim as well.

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