The EURUSD made a false breakout yesterday, topped at 1.3273 but whipsawed to the downside, closed at 1.3108 and hit 1.3083 earlier today in Asian session. This false breakout gives us a technical clue that Euro could have more downside pressure. On daily chart below, I made a new alternative trend line support (white) to show that critical support area around 1.3000 1.2900 is being tested now. This support area could still hold for the remaining days of 2010 and long counter trend intra-day position anticipating bullish correction/consolidation does make sense technically, but for me it is clear that the bias is more to the downside and I still prefer a bearish scenario. Immediate resistance at 1.3170 1.3200. Break above that area could trigger further upside consolidation testing 1.3300 resistance area but false breakouts remain highly potential.
The GBPUSD attempted to push higher yesterday, topped at 1.5509 but whipsawed to the downside, bottomed at 1.5344 and now struggling around 1.5400. Its a volatile and a little bit difficult market especially for intra-day traders but from a broader outlook, its not difficult to see that overall bias remains strongly bearish. Trading in the end of the year is never easy as consolidation usually happen, making some false breakout/down. Note that although the major scenario is clearly more to the downside, price still unable to make a clear break below the trend line support so far. Price may slip several times below the trend line, but the trend line remains a strong support and may hold for the remaining days of 2010. Nearest bearish target is seen around 1.5300. Immediate resistance at 1.5450 - 1.5500. I prefer to stand aside until next year, but will keep my eyes on price action around the trend line support.
The USDJPY attempted to push lower yesterday, bottomed at 81.81 but closed higher at 82.41 after landed perfectly at the trend line support as you can see on my h4 chart below. The bias is neutral in nearest term but overall pressure remains bearish. We need a clear break below the trend line support and 81.81 to continue the bearish scenario testing 80.00 region. Immediate resistance at 82.80. Break above that area could trigger further upside pullback testing 83.50.
The USDCHF continued its bearish pressure yesterday, bottomed at 0.9437 but closed higher at 0.9518. As long as price stay below 0.9550 the nearest bias remains bearish re-testing 0.9437 0.9400 which could be an important daily support for the remaining days of 2010. I personally will stop trading until next year. A break above 0.9550 could trigger further upside pullback testing 0.9600 but as long as price moves inside the bearish channel the major scenario remains strongly bearish.
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