Trading strategy: short at 1.4285, stop at 1.4345 (1% risk), 1st objective at 1.4225, 2nd objective at 1.4165.

Euro remains a victim of gravity as it extended its losses down to 1.4165 overnight, well below support formed by the 200 days SMA around 1.4280. More downside action remains probable as long as intra-day resistance levels into the 1.42-1.43 range will trigger solid selling interest. A break above 1.4350 is needed to confirm that uptrend resumed - but seems unlikely within the coming sessions. Resistance starts at 1.4220 followed by 1.4250 and 1.4285/00 while downside barriers are emerging at 1.4150/65, 1.4100 and 1.4050. Current exchange rate is 1.4206 @07:00 GMT

Support: 1.4150/65, 1.4100 and 1.4050
Resistance: 1.4220, 1.4250 and 1.4285/00
Market sentiment: long term - bullish, medium term - slightly bullish, short term - bearish, intra-day - bearish

EURUSD daily chart 1-20-2010


Trading strategy: stand aside

Kiwi's sell off intensified due to dollar's appreciation across the board, especially against the euro and due to the New Zealand's bad CPI figure which came at -0.20%. My yesterday's strategy to buy a small size at .7370 turned bad when the CPI figure was released, the drop being initiated from .7395, reaching the -0.5% stop at .7320. In case of a recovery, resistance is expected to emerge at .7350, then higher - at .7400. Short term sentiment remains slightly bullish as current decline could be corrective only, but break above .7400 is needed to resume uptrend. Current exchange rate is .7285 @07:00 GMT

Support: .7250/65, .7200 and .7150
Resistance: .7350, .7400 and .7430/50
Market sentiment: long term - bullish, medium term - bullish, short term - slightly bullish, intra-day - bearish

NZDUSD 4hrs chart 1-20-2010