EUR: Attempt small longs at 1.4915; stop below 1.4800

Nicole Elliott from Mizuho Corporate Bank at 11/19/09

Comment: Consolidating neatly under this year’s high at 1.5064 and above the 26-day moving average. Rising trendline and the Ichimoku ‘cloud’ will provide support and suggest a long position for a break to new highs later on.

Strategy: Attempt small longs at 1.4915; stop below 1.4800. Short term target 1.5000/1.5055, eventually more.

Comment: All Yen crosses are looking marginally more top-heavy. Hopefully this should gather pace helping nudge one another down towards the lower edge of this year’s broad trading band.

Strategy: Attempt shorts at 132.75, adding to 133.50; stop above 134.05. Short term target 132.00, then more.

Comment: Consolidating neatly under this year’s high at 1.7044, testing the 9-day moving average which will hopefully provide support as it has done foe the last two weeks. A weekly close above 1.7000 would kick it into play.

Strategy: Buy at 1.6705; stop below 1.6650. First target 1.6850, then 1.7000/1.7050, eventually more.

Comment: Yesterday’s tiny range may give some the impression that thin Christmas markets have arrived early. Do not be lulled into a false sense of security and we still favour a sharp drop and a serious downside test of key support at 87.00 (and then 85.00) this week and through to December.

Strategy: Sell at 89.05, adding to 89.50; stop well above 89.75. Short term target 88.25/88.00, eventually 87.25/87.00.