USD Remains Well Offered Despite Oversold Readings (Daily Classical)

Published June 2nd, 2009 - 09:26 GMT
Al Bawaba
Al Bawaba

•    Euro continues to surge; takes out 1.4300
•    Dollar/Yen remains locked in sideways trade
•    Cable breaks above 1.6500 barriers; 1.6675 next
•    Dollar/Swiss finally posts fresh 2009 lows for first time since January







EUR/USD



EUR/USD – Monday’s bearish doji-like close has been negated and the market has once again managed to surge to fresh 2009 highs beyond 1.4300. Daily studies however remain overbought and now well above 70 on the RSI which warns of a pullback over the coming days. We had attempted a short trade on Monday but the market easily took us out at 1.4260. From here we will stand aside and await another opportunity to establish a counter-trend short. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.

Level

Resistance

Details

1.4435

R3

12/17 high

1.4365

R2

12/29 high

1.4315

 R1 

6/2 09 high

Level

Support

Details

1.4165

S1

5/29 high

1.4100

S2

6/1 low

1.4005

S3

10-Day SMA



USD/JPY



USD/JPY – The market has been well offered over the past several weeks but setbacks have now stalled out just shy of next key support by 93.55 from March, which guards against the critical 87.15 multi-year trend lows. We have seen a contraction in volatility over the past few sessions which suggests that a break out looms. However, the direction is unclear at this point with a push above 97.25 or back under 93.85 required for a clearer bias. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.

Level

Resistance

Details

97.85

R3

5/12 high

97.25

R2

5/28 high

96.65

 R1 

6/2 high

Level

Support

Details

95.35

S1

6/2 low