EURUSD

Trading strategy: looking to sell at 1.3635, stop at 1.3685 (0.5% risk), objective at 1.3535

The euro recovered after testing bids at 1.3665 yesterday but still holds below 1.3550/60 which provided for 2 weeks. Short-term sentiment is bearish but the pair is still looking for direction and potential rallies above recent intra-day high at 1.3570 may extend higher, retesting 1.3600/30. Potential break over 1.3600/30 would resume recovery - targeting 1.3800 on first phase. Interesting enough is that according to COT data, net shorts dropped by 40% last week - on the rally to $1.38 - but there's still a long way until the figures will turn positive; perhaps over $1.4. Current exchange rate is 1.3522 @06:55 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
EURUSD 4hrs chart 3-23-2010
EURUSD
EURUSD daily COT 3-23-2010

GBPUSD

Trading strategy: looking to sell at 1.5200, stop at 1.5280 (1% risk), objective at 1.5000

Cable rallied to 1.51 where but it's holding gains above first intra-day support at 1.5020 which may limit losses on pullbacks. While it remains intact, look for more upside action towards 1.5210/60. Next support is formed around 1.4950. Short-term sentiment is mixed, but has a good chance of turning positive if 1.5110/20 breaks. Current exchange rate is 1.5063 @06:55 GMT

Support:  1.5000/20, 1.4950, 1.4900 and 1.4800
Resistance: 1.5110/20, 1.5200/10 and 1.5250/60
Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bearish

GBPUSD
GBPUSD 4hrs chart 3-23-2010

Have a great day!