EUR: Attempt small longs at 1.3865

Nicole Elliott from Mizuho Corporate Bank at 02/04/10

Comment: Capped by the 9-day moving average and we go back to watching for signs of attempting to base. The Euro is still very oversold though momentum is strongly bearish.

Strategy: Attempt small longs at 1.3865; stop well below 1.3850. Short term target 1.4000, then 1.4180.

Comment: Holding neatly above the recent low at 124.45, just ahead of May’s low at 124.38. This is easing the oversold situation, but so is bearish momentum. All yen crosses are still expected to trade down later this month.

Strategy: Attempt shorts at 126.25; stop above 127.15. First target 125.85, then 124.50.

Comment: Slapped down by the 9-day moving average, once again probing the 1.5800 area that has limited the downside for much of the last eight months. Wait and watch for signs of forming yet another interim low in this area. No need to rush really as Cable has been going broadly nowhere for too long.

Strategy: Possibly attempt small longs at 1.5875; stop well below 1.5800. Short term target 1.6000/1.6070.

Comment: Pushing a little higher than we had allowed for, pushed by a rising Ichimoku ‘cloud’, though still trading between the 9-day and 26-day moving averages. Watch for signs of fatigue and topping today and tomorrow.

Strategy: Sell at 91.00; stop above 91.50. Short term target 89.85, eventually 88.50/88.25.