EURUSD
Trading strategy: long at 1.3330, stop at 1.3260(0.5% risk), 1st objective at 1.3380, 2nd objective at 1.3460
Dollar’s weakness continues as the euro hits a 5-month top at 1.3440 – above last month’s high which may provide support now, around 1.3330. Important upside target comes at 1.3510 – half retracement of full decline from last year’s top at 1.5140 to June’s 1.1875, 5-year low. Market’s sentiment is bullish on a short-term basis, since breaking above 1.2900, but medium term studies are still in a bearish configuration since, technically, current recovery could be only corrective. We should be aware that if EURUSD’s decline from the 1.5 to 1.18 was all about euro’s weakness over Greece debt concerns – this recovery is not about euro’s strength, but dollar’s weakness and less apocalyptic fiction scenarios and news regarding Euro Zone’s integrity. Except for the past few months when the EUR fell like a rock – this pair is all about dollar’s sentiment and U.S. economy – fact confirmed by other correlated and inversely correlated pairs, such as USDCHF. My advice is to not look at $1.5+ yet, just because the EUR recovered in 3 months as much as it lost in a single month – it is still far below levels we’ve been used to, although its fair value is not in the 1.5 region, perhaps not even around current highs. Speaking of current conditions – I believe that we’ll see more gains, testing the longer term retracement values at 1.35 and 1.39 – buying dips or on breaks higher being good plans for now. Current exchange rate is 1.3396 @06:00 GMT
Support: 1.3330, 1.3200 and 1.3150 Resistance: 1.3440/50, 1.3500/10 and 1.3600 Market sentiment: long term – bearish, medium term – slightly bullish, short term – bullish, intra-day – bullish
EURUSD daily chart 9-23-2010 
EURUSD weekly chart 9-23-2010
More trading setups
USDCHF
USDCHF weekly chart 9-23-2010
EURCHF
EURCHF daily chart 9-23-2010
GBPUSD
GBPUSD 4hrs chart 9-23-2010
Gold
Gold 4hrs chart 9-23-2010
Have a great day!
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