Quote of the day: The possession of facts is knowledge, the use of them is wisdom. Thomas Jefferson

EURUSD

Trading strategy: stand aside

The euro is back into the 1.36 zone after the 4th rebound from the 1.3440 bottom, last week's top side along with the downward trend line resistance coming from 1.3840 being under pressure. If current break above 1.3600 is sustainable - extended gains towards 1.3800 and 1.3850 are likely. Short term sentiment remains bearish as long as the 1.38 region does not come under buying pressure but recent recoveries from 1.3440 provide symptoms of short-term trend exhaustion, suggesting a reversal. Intra-day support starts at 1.3600 backed by 1.3550/60 and 1.3500. If price pulls back from current levels, keep an eye on the 1.3540/60 as that's where the EUR may catch a bid and still not signaling a resume of downtrend, remaining in a bullish structure development phase. Current exchange rate is 1.3635 @06:30

Support: 1.3600, 1.3540/60, 1.3500 and 1.3440/50
Resistance: 1.3640/50, 1.3680/00, 1.3780 and 1.3850/60
Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bullish

EURUSD
EURUSD 4hrs chart 3-3-2010

GBPUSD

Trading strategy: looking to sell at 1.5175, stop at 1.5235(1% risk), objective at 1.5055

Cable holds under high pressure despite the overnight recovery above the 1.5 mark - currently facing resistance around the 50% of last down leg from 1.5320 to 1.4780 - at 1.5050. Intra-day sentiment is bullish but the pair is in a corrective phase, expecting higher floors to provide fresh selling opportunities. Such levels come around 1.5100/15 and 1.5180. Current exchange rate is 1.5019 @06:30 GMT

Support: 1.5000, 1.4900, 1.4850 and 1.4780
Resistance: 1.5050, 1.5100/15 and 1.5180
Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bullish

GBPUSD
GBPUSD 4hrs chart 3-3-2010

Have a great day!