Daily watch points…

• Posted by: kevinmhughes
• February 7th, 2010

Here are the daily levels I'm watching out for on the $EURUSD and $USDJPY.

$EURUSD

- The 55, 100 & 200 day EMA's are all pointing to a weaker $EUR

- Look for a breakdown below 1.3546

- if that level holds (assuming we head there first) and the $EUR looks to bounce, I'll be playing the bounce to th 1.3768 level

- Once support is broken below 1.3546, we should make a run for the 1.3330 support

- Watch your Gold ($GC_F) positions!!

$USDJPY

- The 55, 100 and 200 day EMA's are going sideways

- The pair bounced right up from it's strong support at 88.57 on Thursday

- We may head back to retest the 90.75 level with a break above 89.92

- A breakdown below the 88.75 level we should see the 87.00 level

- I'm anticipating some $JPY weakness; with $JPY weakness, comes equity strength

- But play the charts!!

- If the $JPY strengthens and continues its course, we will see further equity slaughter

We have $CL_F numbers coming out on Tuesday at 10:30 am EST so watch your $AUDUSD, $NZDUSD & $USDCAD positions that day.

Kevin Hughes is the President & Head Trader at K.M. Hughes & Associates, Inc. in Charlotte, NC; a currency trading firm.  If you would like to find out more about Kevin and/or his company, please visit www.hughesincorporated.com

Tickers: $EURUSD, USDJPY

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