EUR: Attempt longs at 1.4495, adding to 1.4455; stop well below 1.4400

Nicole Elliott from Mizuho Corporate Bank at 01/11/10

Comment: Basing against Fibonacci retracement support and the 200-day moving average at 1.4250, as expected, and now set to test the 26-day moving average at 1.4561. Momentum has turned bullish and the Euro is not overbought.

Strategy: Attempt longs at 1.4495, adding to 1.4455; stop well below 1.4400. Short term target 1.4550, then 1.4800.

Comment: The Yen has lost ground against all currencies, 3% against the leading Korean won last week alone. Very messy as we trade in the middle of last year’s broad sideways band.

Strategy: Possibly attempt very small shorts at 133.85; stop above 134.55. Short term target 133.00, then 131.50.

Comment: Trying to form an interim base in the 1.6000 area, but tediously slow work. Bullish momentum has decreased significantly this year but now looks to be stabilising. Futures positions are being re-built.

Strategy: Attempt small longs at 1.6075; stop below 1.5800. First target 1.6175 then 1.6240.

Comment: A small ‘spike high’ reversal candle on Friday and a ‘doji’ on the weekly chart suggests the rally is running out of steam. Now watch for more signs of topping, starting with a break below immediate trendline support and then a drop below recent interim lows at 91.00.

Strategy: Sell at 92.25, adding to 93.00; stop above 94.00. Short term target 91.25/91.00, then 90.00.