Dollar extending losses

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 exchange rate 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

EURUSD 4hrs chart 9-17-2010

More trading setups

EURCHF

EURCHF daily chart 9-17-2010

AUDUSD

AUDUSD 4hrs chart 9-17-2010

AUDJPY

AUDJPY daily chart 9-17-2010

Gold

Gold daily chart 9-17-2010

Have a great weekend!

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