EUR: Attempt small longs at 1.5015, adding on a dip to 1.4950; stop below 1.4800

Nicole Elliott from Mizuho Corporate Bank at 10/23/09

Comment: Another new high for this year at 1.5061 with the 9-day moving average rising quickly. The Euro is slightly overbought and bullish momentum is fairly strong and might increase on a weekly close above the psychological 1.5000 level.

Strategy: Attempt small longs at 1.5015, adding on a dip to 1.4950; stop below 1.4800. Add to longs on a sustained break above 1.5065 for 1.5245 short term.

Comment: Rallying to some of the highest prices this year (as other Yen crosses trade up to the highest levels in many months). Once again we shall watch for signs of toping.

Strategy: Possibly attempt the tiniest shorts at 137.65; stop above 138.35. Short term target 135.00.

Comment: Almost this week’s star turn (pipped to the post by Kiwi) but has stalled around decent resistance at 1.6665, a level that held for most of the time since June. A weekly close above here would be very significant and targets this year’s high at 1.7044.

Strategy: Attempt small longs at 1.6635, adding on a drop to 1.6535; stop below 1.6470. First target 1.6665/1.6675 then 1.7045.

Comment: Stalling against the 91.65 area which should provide decent resistance; continue to watch for signs of topping, creating yet another interim high. Note that the lower edge of a descending Ichimoku ‘cloud’ and moving averages still suggest a short position.

Strategy: Attempt small shorts at 91.65; stop well above 91.75. Short term target 91.00, then 90.00.