EUR: Attempt small longs at 1.4915; stop below 1.4800

Nicole Elliott from Mizuho Corporate Bank at 11/20/09

Comment: Little to add as we consolidate 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. In the meantime allow for more sideways work.

Strategy: Attempt small longs at 1.4925; stop below 1.4800. Short term target 1.5000/1.5055, eventually more.

Comment: All Yen crosses look a little top-heavy but not dramatically so. Hopefully this should gather pace helping nudge one another down towards the lower half of this year’s broad trading band.

Strategy: Attempt shorts at 132.55, adding to 133.70; stop above 134.05. Short term target 132.00/131.75, then more.

Comment: Tricky as we consolidate under this year’s high at 1.7044, dropping below the 9-day moving average, while holding above the 26-day one. Until we get a w weekly close above 1.7000 expect more of the same where dips, and who knows how low these may be, are seen as buying opportunities for a long term move higher.

Strategy: Attempt small longs at 1.6650; stop below 1.6550. First target 1.6800, then 1.7000/1.7050.

Comment: Getting there – very slowly. We continue to favour a serious downside test of key support at 87.00 (and then 85.00) this week and through to December.

Strategy: Sell at 88.75, adding to 89.50; stop well above 89.75. Short term target 88.25/88.00, eventually 87.25/87.00.