For December 3rd 2009

For December 3rd 2009

Questions and suggestions? Contact me at [email protected] Any information contained in this document are based on or derived from information generally available to the public from sources believed to be reliable. There’s no representation or warranty is made or implied that it is accurate or complete. Any opinions expressed are subject to change without notice. This post has been prepared solely for information purposes and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy. Charts were generated using Alpari UK’s MetaTrader 4.0

EURUSD

Euro went up first towards 1.5109 before it fell to hit 1.5032 on Wednesday. Basically, there is no change in view. Euro is still seen up as long as it holds above 1.4970. We are looking for a new significant swing low which could replace 1.4970. So far, it could be 1.5032 at the moment. However some other retracement levels at 1.5026 and 1.5005 may pull the price down for one more time before a new rally starts. LONG position might have been established at 1.5043. Those who entered immediately might have been stopped out already if the stop was set around 1.5058. At 1.5026 and 1.5005 may add more LONGS if adopting multiple entries strategy. Stop should be below 1.4970 and targets are set at 1.5127/28 and 1.5159/68. Should the pair falls below 1.4970, the entire bullish scenario will be suspended.

GBPUSD

Apparently, immediate entry was not a good idea to begin with. GBPUSD fell towards 1.6549 before it rallied towards 1.6695, so basically waiting for retracement was the best course of action for Wednesday. Not exactly meeting the supports and resistances to the 100% precision, LONG position could have been considered as entered at around 1.6549 and that the first objective at 1.6646 had been reached. The second at 1.6700 could be considered as reached as well. At the moment, the pair seems to be on a zigzag downwards pattern, aiming at 1.6601 and 1.6560. We have the retracement levels of the entire rise from 1.6379 towards 1.6695 at 1.6621, 1.6574 and 1.6537 down to 1.6454; while on the upside we have a descending trendline as the first resistance level followed by 1.6670 and 1.6695. For short-term, the bias is down, probably heading towards 1.6549. In addition, there is the risk that the entire correction has been completed at 1.6695 as the structure corresponds to the ABC correction with C started at 1.6379 and ended at 1.6695. Look to enter mild SHORT while below 1.6695, aiming at each of the fibo retracement levels. Stop should be above 1.6695 and it should be trailed down each time a support level is reached.

USDJPY

Another miss on USDJPY. The pair went up towards 87.48 and still consolidating itself there currently. It is likely that the corrective rally from 84.80 is set to continue and the pair to head towards 88.01/05 soon and possibly to as high as 88.95. Supports are seen at 86.98 and 86.48/50. The latter now becomes the critical support level and below this will suggest that the upside is likely to be over. For today, look to enter LONG, possibly on the break of 87.52 with stop set below 86.98 or if possible, below 86.48. Otherwise, enter gradually with stop below 86.48. Targets should be at 88.01/05 and then 88.95.