Quote of the day: Belief in the absence of illusions is itself an illusion. - Barbara Grizzuti Harrison


Trading strategy: looking to sell at 1.3625, stop at 1.3685 (1% risk), objective at 1.3505

The euro continued its decline to as low as 1.3503 amid all the talk about a possible bailout for Greece. However, the Greek prime minister warned that he might instead turn to the IMF for help. Therefore, the euro remains heavy and very sensitive to talks and rumors while no real solution is found. Support on the 1.3500 mark is intact but breakdown seems likely - next downside barrier emerging at 1.3440/50. Short-term sentiment is bearish as the last recovery to $1.38 has been short-lived and a break above 1.3620/30 is needed to resume recovery. Current exchange rate is 1.3502 @07:05 GMT

Support: 1.3500, 1.3440/50 and 1.3400
Resistance: 1.3600/30, 1.3680/00, 1.3735, 1.3800/20 and 1.3850/60
Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bearish

EURUSD 4hrs chart 3-22-2010


Trading strategy: looking to sell at 1.5120, stop at 1.5190 (0.5% risk), objective at 1.4980

The pound dropped 260 points last Friday, breaking below freshly formed support around 1.5190 - which now turned resistance, again. Support into the 1.4950 region seems stable so far but short-term momentum is negative and no signs of recovery are seen, therefore selling into the rallies could be the best bet for now. Intra-day sentiment is bearish, too, but will turn positive on a potential recovery above 1.5050. Current exchange rate is 1.4955 @07:05 GMT

Support:  1.4950, 1.4900 and 1.4800
Resistance: 1.5030/50, 1.5100 and 1.5190/00
Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bearish

GBPUSD 4hrs chart 3-22-2010

Have a great day!