EUR/USD: (1.3936) Below bearish Flag off 1.4218

KBC Market Research Desk from KBC Bank at 02/01/10

Drop below the bearish Flag off 1.4218 sent the pair to a new reaction low, in channel from 1.4580 (see graph) and trying to extend below the daily channel bottom off 1.5142 (1.3893 today).
Support area at 1.3852 (today’s + current reaction low off 1.5145?), ahead of 1.3819 (daily Bollinger bottom), where pause favored, amid overextended readings.
If wrong, next level at 1.3781 (daily envelope bottom), ahead of 1.3764/ .3748 (daily Starc bottom/ June 2009 low): tough on 1st attempts.
Resistance at 1.3893 (see above + daily envelope top), with next levels at 1.3958/ .3961 (daily Short Term Moving Average↓/ weekly envelope top), ahead of 1.3988 (reaction highs hourly), where pause favored.
If wrong, next levels at 1.4058/ 4053 (reaction highs hourly), ahead of 1.4134/ .4141 (weekly Short Term Moving Average↓/ daily Medium Term Moving Average↓): must sustain back above to call end on alert on €.

USD/JPY: (90.26) Retested 90.56

EUR/GBP: (.8700) Above channel off .9028

EUR/JPY: (125.17) Below 127.32