Trading stratetgy: looking to sell at 1.3795, stop at 1.3855(1% risk), objective at 1.3675.

Yesterday's close above last week's top and above the falling trend line coming from 1.3840 was an upside confirmation and support may be found now into the 1.3625/50 region. There are several important events today such as the ECB Interest Rate decision at 12:45 GMT, followed by Trichet's speech, US Initial Jobless Claims  along with the Nonfarm Productivity at 13:30 GMT. If the euro will sustain gains above $1.36, short-term sentiment will remain in a slightly bullish stance, thus extended gains towards key resistance around 1.3850 being favored within the coming days. Intra-day sentiment is bearish for now, as the euro gives back some of yesterday's gains but the move could be corrective - so keep an eye on the 1.3650 and 1.3600 support regions. Current exchange rate is 1.3661 @07:20 GMT

Support: 1.3625/50, 1.3600, 1.3540/60, 1.3500 and 1.3440/50
Resistance: 1.3700, 1.3735/50, 1.3780 and 1.3840/60
Market sentiment: long term - bullish, medium term - bearish, short term - slightly bullish, intra-day - bearish

EURUSD 4hrs chart 3-4-2010


Trading strategy: stand aside

Cable recovered up to 1.5130 yesterday but continues to face selling pressure on rallies so the 1.5000 mark is back in focus, being the first important support level on its way down towards recent lows. Short-term sentiment is highly bearish and a change is quite unlikely - since a break above 1.5300 is needed to signal a change on short-term basis. BOE's interest rate decision at 12:00 GMT is one of today's important events to watch - interest rate being expected to remain unchanged at 0.5%. Current exchange rate is 1.5052 @07:20 GMT

Support: 1.5000, 1.4900, 1.4850 and 1.4780
Resistance: 1.5080, 1.5130 and 1.5180
Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bearish

GBPUSD 4hrs chart 3-4-2010


Trading strategy: stand aside

The kiwi dollar continues to lose ground after prolonged hesitation against the .7000 resistance, and it is down 120 points - making the .6760 support a reasonable target. Short-term sentiment is bearish as a sustained break above .7000 was needed to confirm a change in direction. .6845/50 is an interim support formed by a trend line coming through last week's lows. Both daily and 4 hours charts are suggesting that more losses are likely. Current exchange rate is .6874 @07:20 GMT

Support: .6845, .6800 and .6760
Resistance: .6930, .7000 and .7050
Market sentiment: long term - bullish, medium term - slightly bearish, short term - bearish, intra-day - bearish

NZDUSD daily chart 3-4-2010

Have a great day!