EURUSD

Trading strategy: standing aside

The euro recovered after diving to as low as 1.2205 yesterday as the Fed reiterated it plans to keep rates “exceptionally low” for an “extended period”, repeating the language used in previous statements. The central bank’s decision to keep rates unchanged was widely expected but analysts say that the language used to describe the state of the economy is a bit more cautious than in April. Yesterday’s pullback into the low 1.22 region was short-lived and the upside is back in focus – first resistance being seen around 1.2350, followed by a more notable barrier at 1.2465/00. Short-term sentiment is bullish and won’t change while the 1.2150 level provides a stable support and is far from current market levels. A sustained break above 1.2350 could offer a good buying opportunity.

Support: 1.2300, 1.2250/70, 1.2150 and 1.2000
Resistance: 1.2350/65, 1.2450/65, 1.2500 and 1.2670
Market sentiment: long term – bearish, medium term – bearish, short term – bullish, intra-day – bullish

GBPUSD

Trading strategy: small long at 1.4850, stop at 1.4770 (0.5% risk), 1st objective at 1.4900, 2nd objective at 1.5000

The pound is a good performer against the dollar nowadays and managed to reconquer the upside territory by climbing towards the 1.5000 where it found temporary resistance. If current pullback will extend lower, support should emerge around 1.4850 and 1.4800, lower. Short-term sentiment will remain positive as long as 1.4800 provides a stable barrier on dips. Current exchange rate is 1.4982 @06:20 GMT

Support: 1.4900, 1.4850, 1.4800 and 1.4700/20
Resistance: 1.5000, 1.5100 and 1.5250/70
Market sentiment: long term – bearish, medium term – bearish, short term – bullish, intra-day – bullish

Other setups:

EURJPY

USDCHF

EURGBP

Have a good day!

I am an independent currency trader providing currency market analysis mainly for two reasons: 1. to improve my discipline, keeping a clear track record of my own thoughts, analyzing both my good and bad expectations on market moves; 2. sharing my thoughts with other traders, hoping they may benefit from my opinions and experience. I don't call myself a veteran or trading guru of some sort as there's a lot more I have to learn, a lot more I have to see and my 8 years experience into currency trading is not enough proof that I will be successful during the next 8 years. I dare to believe that my articles are useful to many traders from around the world and I strive to improve in my attempt to become a better and more accurate writer. innerfx.com is my own project, a blog about currency trading where I share my commentaries and market thoughts. The site has been launched to address the needs of other currency traders and also to keep a track record of my articles. I am not fully dedicated to currency trading because I want to diversify my knowledge, therefore I am involved in different areas such as IT&C.

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