Daily analysis and trading strategies 2-10-10

EURUSD

Trading strategy: holding yesterday's short at 1.3825 with stop at breakeven, objective at 1.3725.

The euro recovered up to 1.3840 session's high yesterday due to news of Eurozone deciding to aid Greece. The rally was short-lived as the news turned out to be unfounded. One gets to realize how sensitive the market is. However, the rally to 1.3840 fulfilled my expectations and my strategy's short at 1.3825 got triggered, being a good trade which reached 90 points profit a bit earlier today, but still not reaching the 100 points target. Despite intra-day charts being slightly bearish, I think that the EUR holds gains just fine and the decline from 1.3840 could have been larger, potentially bringing Monday's trading region back in focus. As the pair maintains its bid tone above 1.3750 - more upside action is likely, retesting yesterday's top and 1.3900/30 eventually. Short-term sentiment is bearish and a change of current bearish structure would occur only on a sustained breach above 1.3900. Current exchange rate is 1.3777 @07:20 GMT

Support: 1.3725/50, 1.3700, 1.3650 and 1.3585 Resistance: 1.3800/05, 1.3840/60 and 1.3900/30 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - slightly bearish

EURUSD 4hrs chart 2-10-2010

NZDUSD

Trading strategy: stand aside

The .7000 mark is in focus as the kiwi-dollar managed to breach above .6900 - level which provides intra-day support for now. If the current recovery extends higher, next barriers are formed into the .7000/20 region, followed by .7100 and .7150, higher. A downward trend line coming from .7400 through last week's top at .7150 is currently seen around .7030, thus strengthening the technical resistance region of .7000/20. Upside is slightly favored for now, although short-term studies being bearish. Current exchange rate is .6945 @07:20 GMT

Support: .6980/00, .6850/60, .6800 and .6750 Resistance: .6980, .7000/20, .7100 and .7150 Market sentiment: long term - bullish, medium term - slightly bearish, short term - bearish, intra-day - slightly bullish

NZDUSD 4hrs chart 2-10-2010

Have a great day!