Euro Short Produces Favorable Result; Stops Trailed to Cost (Daily Classical)

Published July 2nd, 2009 - 21:23 GMT

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EUR/USD

EUR/USD – More choppy trade in the final full session of the week with the market continuing to consolidate below the 1.4340 2009 highs set in early June. The bearish price action on Thursday would suggest that the market could be prepping for a more significant decline back towards 1.3750-1.3830, but a close below 1.4000 will be required to reaffirm our bearish outlook. A lower top is now sought out below 1.4340 at 1.4200 and only back above 1.4200 will negate. We have booked some profit on our short and have stops at cost on the remaining position. Position: SHORT @1.4180 FOR AN OPEN OBJECTIVE; REVISED STOP @1.4180. We booked profit on 1/5 of the position earlier at 1.4100.

Level	Resistance	Details
1.4270	R3	6/5 high
1.4200	R2	7/1 high
1.4155	R1	6/30 high
Level	Support	Details
1.3980	S1	6/29 low
1.3890	S2	6/24 low
1.3830	S3	6/23 low

USD/JPY

USD/JPY – For now, it looks like the market is content on trading within a broad range, loosely defined between 94.00-100.00. The latest minor recovery from 94.90 has been well capped by 97.00 and Thursday’s bearish reversal day suggest that the market could be poised for a fresh drop below 94.90 to challenge the critical trend lows by 93.55-85 from March and May respectively. Back above 97.00 delays. Strategy: STAND ASIDE; AWAIT CLEARER SIGNAL