Tuesday 18 October 2011

Uptrendlines broken

Majors (EUR, GBP, CAD and AUD vs USD) have all broken their short term uptrendlines yesterday. However they are now sitting on their support levels, so I would not be surprised if a bounce ensues


Should Majors bounce versus USD, then these are the levels where shorting them present good reward to risk:

EURUSD could go to 1.3724 which is the neckline of H&S pattern on this 4h chart. Stop 1.3805. Target 1.3570

For AUDUSD, Minimum upside bounce target is 1.0218 . Above that look for it to kiss the broken trendline goodbye which is currently at 1.0275. Stop 1.0318. Target 1: 1.0010 & Target 2 0.9910

USDCAD can go down to 1.0150 or to the broken downtrendline where we can long the pair to the first target of 1.0335.

GBPUSD can go back up to 1.5740 before reversing to the first target of 1.5660. Stop is at 1.5820

At the end of the day, I am only looking for these moves as retraces and not a full blown USD rally. So, at some point I will be looking at shorting USD again, technicals confirming :)


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