EUR: Possibly attempt tiny longs at 1.4295; stop below 1.4175

Nicole Elliott from Mizuho Corporate Bank at 01/04/10

Comment: Mixed views on the US dollar as the Euro trades back down where it was last summer. The Weekly Ichimoku chart suggests a long position and we shall be watching to see whether it manages to stabilised against medium term Fibonacci retracement. Also watch the Lagging Span which might garner support from last summer’s candles.

Strategy: Possibly attempt tiny longs at 1.4295; stop below 1.4175. Short term target 1.4440.

Comment: Once again rallying from the 127.00 region as it did in early December. Now let’s see if a widening Ichimoku ‘cloud’ can form another interim high.

Strategy: Attempt small shorts at 132.95; stop above 134.55. Short term target 131.00.

Comment: One wonders whether there really is much point watching Cable as we trade in the same range, above medium term Fibonacci support, for seven consecutive months.

Strategy: Possibly attempt small longs at 1.6085; stop below 1.6070. First target 1.6200 then 1.6400.

Comment: In very thin conditions the Yen has retraced 50% of last year’s decline; now let’s see if medium term trendline resistance holds. The US dollar is more overbought than it has been since March 2009 but bullish momentum is the same as it was mid-December. Watch for signs of forming an interim top this week or next.

Strategy: Possibly attempt small shorts at 93.00; stop above 93.35. Short term target 92.00, then 91.15.