Quote of the dayIt is impossible for a man to learn what he thinks he already knows. - Epictetus

EURUSD

Trading strategy: holding yesterday's long @1.3655; will close at breakeven if downtrend resumes

1.3700 provides intra-day resistance on current recovery from 1.3640 - 61.8% of last week's up leg, intra-day sentiment being slightly bullish at the time of writing these lines. However, today's important events such as the German Zew Economic Sentiment at 11:00 GMT and the Fed Interest Rate Decision along with the FOMC Statement at 19:15 GMT may cause volatile moves. Meanwhile, upside is slightly favored ad gains may extend towards recent top at 1.3795 if yesterday's decline was corrective in nature. Below 1.3640/50, next support levels emerge at 1.3600/15, 1.3550 and 1.3500. Below 1.3550 - downtrend should resume indicating that the gains to 1.3780/95 were part of a corrective cycle. Current exchange rate is 1.3685 @07:07 GMT

Support:  1.3640/50, 1.3600/15, 1.3550 and 1.3500
Resistance: 1.3700, 1.3750, 1.3790/00, 1.3840/60 and 1.3900
Market sentiment: long term - bullish, medium term - bearish, short term - slightly bullish, intra-day - slightly bullish

EURUSD
EURUSD 4hrs chart 3-16-2010

NZDUSD

Trading strategy: standing aside

The kiwi dollar recovered in overnight trading and is challenging last 2 days' top at .7050, ahead of .7100 which is a more important barrier. If current upward trajectory will stay intact, conserving gains above .6960/70 - a potential break above .7100 may occur within the coming days, opening .7275/00 - resistance formed by the downward trend line coming from .7633 of October, extended through December's .7440. Intra-day sentiment is bullish, short-term sentiment being slightly bullish too. Current exchange rate is .7043 @07:07 GMT

Support: .6960/70, .6940/50, .6900/15, .6850 and .6800
Resistance: .7060, .7100, .7130/50 and .7200
Market sentiment: long term - bullish, medium term - slightly bearish, short term - slightly bullish, intra-day - bullish

NZDUSD
NZDUSD daily chart 3-16-2010

AUDJPY

Trading strategy: standing aside

My last plan to go long on a potential break higher above recent top at 83.30 was not so inspired as the Yen strengthened across the board despite better than expected retail sales figures. Sentiment remains bullish on the pair and extended dips are likely to find strong buying demand - around 81.00, eventually 80.00. Meanwhile, intra-day momentum is bearish and more losses are likely - 82.00 being the first support to watch. Current exchange rate is 82.56 @07:07 GMT

AUDJPY
AUDJPY daily chart 3-16-2010

Have a great day!