EUR: Possibly attempt tiny longs at 1.3915

Nicole Elliott from Mizuho Corporate Bank at 01/07/10

Comment: Little to add as we struggle to try and form an interim base against Fibonacci retracement support and the 200-day moving average at 1.4250. Note that the Euro is lagging behind this month’s ‘darlings’ which are Aussie, Kiwi, Canada, Norway and now the Swiss franc.

Strategy: Possibly attempt longs at 1.4365/1.4300; stop below 1.4200. Short term target 1.4450.

Comment: Bouncing from the bottom of the daily Ichimoku ‘cloud’, the sudden sharp moves suggesting this market is looking for direction. Note that other Yen crosses are trading higher, some to levels higher than anything last year (mainly other Asian currencies).

Strategy: Possibly attempt small shorts at 133.20; stop above 133.85. Short term target 131.50.

Comment: This week’s worst performing major currency, struggling below a decent-sized daily Ichimoku ‘cloud’. This could continue for some time.

Strategy: Possibly attempt small longs at 1.5945; stop below 1.5800. First target 1.6050 then 1.6240.

Comment: ‘Triangle’ consolidation this week around the 9-day moving average and now testing immediate trendline support. A daily close below here might see momentum turn bearish.

Strategy: Attempt shorts at 92.15; stop above 92.80. Short term target 91.25/91.00, then 90.00.