EUR/USD - Daily forex analysis and strategies 9-9-10

Quote of the day: It has become appallingly obvious that our technology has exceeded our humanity. - Albert Einstein

EURUSD

Trading strategy: short at 1.2675 on hourly close below 1.2670, stop at 1.2735(0.5% risk), 1st objective at 1.2625, 2nd objective at 1.2550

Former support around 1.2770 was tested and held, as I was expecting in my article yesterday, and downside pressure remains high. Euro's come back after the 1.2770 attempt was probably caused by ECB chief economist Juergen Stark who said that German banks need more capital. Support trend line coming from 1.2585, connecting the weekly lows until now, is again in focus. Potential breakdown should offer a fresh selling opportunity - aiming towards 1.2500. On the upside, same 1.2770 is where to look for a confirmation if the euro recovers, but for now - the downside remains favored. Today's most important events in the economic calendar are the German CPI, ECB monthly report, Trade Balance and Initial Jobless Claims later today, in the U.S. Current exchange rate is 1.2703 @05:33 GMT

Support: 1.2650/75, 1.2600 and 1.2500
Resistance: 1.2770/00, 1.2850, 1.2900/20 and 1.3000
Market sentiment: long term - bearish, medium term - slightly bullish, short term - bearish, intra-day - bearish

EURUSD 4hrs chart 9-9-2010

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Gold daily chart 9-9-2010

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GBPUSD daily chart 9-9-2010

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EURJPY 4hrs chart 9-9-2010

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USDCAD daily chart 9-9-2010

Have a great day and good luck trading!