Trading strategy: stand aside

The euro holds recently gains above the higher half of the 1.44 zone but so far it couldn't stabilize above the 1.4500 handle, remaining into the bearish flag range while the upper barrier at 1.4530/50 is intact. Upside is favored for now and extended gains out of current range may print fresh highs at 1.4600, 1.4700 eventually. Looking at the dollar index chart, important support is noticed into the 76-76.30 region - formed by the 50 days MA. Well, if dollar's weakness is to continue, then the 76 handle is the first key important level to watch - corresponding (more or less) to 1.4700 of EURUSD. Today's economic schedule is lighter but some might position themselves ahead of tomorrow's ECB Interest Rate decision along with Trichet's speech at 13:30 GMT. Current exchange rate is 1.4510 @07:05 GMT

Support: 1.4450, 1.4400/20, 1.4300 and 1.4250
Resistance: 1.4520/50, 1.4600 and 1.4700
Market sentiment: long term - bullish, medium term - slightly bullish, short term - bullish, intra-day - bullish

EURUSD 4hrs chart 1-13-2010
USD index 1-13-2010


Trading strategy: short at .7500, stop at .7550 (1% risk), 1st objective at .7450, 2nd objective at .7400

Both kiwi and aussie dollar faced selling interest yesterday as a result of gold's sell-off. The News Zealand dollar had held on to gains made at the start of the week on the back of US dollar weakness but managed to fill the Monday open gap. Today's recovery brings previous days' top side in focus, currently trading 15-20 points away from it. Both short-term and intra-day studies are bullish and upside is likely to remain favored for now, first objective being .7500 where the NZ dollar would re-test November's top. In case of re-initiating the downward correction, I expect .7350 or ultimately .7300 to limit losses. Current exchange rate is .7416 @07:05 GMT

Support: .7400, .7350, .7300 and .7250/85
Resistance: .7430/50, .7500 and .7600/30
Market sentiment: long term - bullish, medium term - bullish, short term - bullish, intra-day - bullish

NZDUSD daily chart 1-13-2010
Gold daily chart 1-13-2010

Have a great day!