Daily technical outlook

EURUSD

The euro has been dragged to lows into the 1.4180 region on yesterday’s pullback but the support on the 1.4200 handle remains intact and as long as it holds, short-term sentiment will remain positive. There are lots of economic events this week so anything can happen. The euro tries to recover at the time of writing this and if the recovery won’t lose strength within the coming trading hours, hence resuming yesterday’s decline, look for resistance within the 1.4290-1.4320 region later today – formed by the upward trend line which provided a stable support on the last climb along with the fib retracement levels of the last down leg. Intra-day sentiment is negative but may change above 1.4250. If yesterday’s decline resumes, next bearish objective below 1.4200 comes into the 1.4025-1.4050 region, both a rising trend line and a August’s bottom. Current quote is 1.4212 @05:50 GMT

Support: 1.4200, 1.4150/75, 1.4100 and 1.4025/50
Resistance 1.4290/20, 1.4375/00 and 1.4450

GBPUSD

The resistance into the 1.6375 region which I mentioned on yesterday’s report as a barrier where the Pound will potentially cap has provided a reversal point and the decline extended below recent bottom at 1.6180 which now provides a minor resistance. Downside pressure is high since cable missed its chance on initiating a recovery cycle. Therefore, more weakness seem a valid scenario – 1.6000 being the next objective. On a recovery, there’s quite a long way it has to climb until providing good reasons to believe in a rise that may extend past intra-day time frames. Current quote is 1.6150 @05:50 GMT

Support: 1.6150, 1.6100 and 1.6000
Resistance: 1.6180/00, 1.6250 and 1.6350

USDCAD

Yesterday’s bounce I’ve been expecting has been valid but unfortunately it occurred a bit earlier, 45 points away from my entry order. However, the ‘nice looking’ trend line is still there and the U.S. dollar is approaching it once again. We will see if it causes any reaction if reached, around 1.1100. Personally I wouldn’t sell as the short term sentiment is positive and last month’s top side is under pressure – therefore a potential break out could easily lift the buck into the 1.1200-1.1300 region on the coming sessions. Current quote is 1.1028 @05:50 GMT

Support: 1.1000, 1.0900 and 1.0850/60
Resistance: 1.1100, 1.1150, 1.1200 and 1.1300

Published on Wed, Sep 2 2009, 05:56 GMT