First day of the last month in of the 1st Quarter of 2010

• kevinmhughes
• March 1st, 2010

Over the weekend, news came out about how Europe ($EUR) is going to bail out Greece with $30,000,000,000.   It should be very advantageous for the $EURUSD and some other European crosses.  With this news, the $USDX will be affected today.  Below are the charts/levels for the $EURUSD & $AUDUSD (as I’m always preaching, when watching these pairs, we need to keep an eye out on the commodities, they are a tell tail of what type of price action we will see).

$EURUSD:

I definitely see it testing the 1.3660 level before NY trading.  If it breaks and holds above that level, it should run to the 1.3700 level where if that holds, it’s game on to 1.3771.  As you can see from the chart, it’s essentially forming a bearish wedge.  From what I see, for this wedge to be confirmed, it needs to break down and hold below the 1.3625 level which will warrant a run to the 1.3580 area.  Then to the 1.3540 level with continued weakness.  The orange circle on the chart represents (in my eyes) a false breakdown.  BASED ON THE PRICE ACTION I am still bearish on this pair.

$AUDUSD

This pair has been testing the .9000 level over and over again with no success.  If it were to hold above it, we will see the .9075 level shortly.  With a break down and hold below .8965 it should run to the .8930 level then to the .8900 level with continued weakness.

WATCH $CL_F & $GC_F!!!!!!!!

Good luck trading today!  Watch your stops and the price action!

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

Tickers: $EURUSD, AUDUSD

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