Quote of the dayWe must believe in luck. For how else can we explain the success of those we don't like? - Jean Cocteau

EURUSD

Another week passed and the euro remains into the 1.3450-1.3730 range, upside being capped around the falling trend line coming from 1.3840. However, as I wrote in my last report, the re-test of 1.3700/30 (last week's top) is in the cards since support formed by the 61.8% fib of last week's range at 1.3550 has held. Therefore, upside remains favored for now and the trend line from 1.3840, now around 1.3700, is in focus. Break above that would provide a short-term confirmation, opening the North territory for extended gains, thus higher highs - up to 1.3850 which is a key barrier. On a medium term basis, bias is still to the downside but current conditions are suggesting that the downtrend is pretty exhausted. Intra-day support starts at 1.3620/30, backed by 1.3600 and 1.3550. Above last week's top - next upside objective is seen at 1.3770 of February 16, followed by 1.3800 and 1.3840/60. Buying on the break of the 1.3700 barrier could be worth it. Current exchange rate is 1.3691 @07:18 GMT

Support: 1.3620/30, 1.3600, 1.3550, 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 - bullish

EURUSD
EURUSD 4hrs chart 3-8-2010

USDJPY

The yen has lost ground on Friday's NFP release and carry trade is making a comeback. My plan to sell on the round 90.00 was not a fortunate one and more gains are likely, now that the dollar may stabilize above 90.00 - next objective being 91.40 - the falling trend line from 93.75, and 92.00 - potential double top formation along with February's peak. In case of a pullback, former resistance around 89.40/50 may provide support. Current exchange rate is 90.49 @07:18 GMT

USDJPY
USDJPY daily chart 3-8-2010

AUDJPY

Sharing the bullish stance with other yen pairs, the Aussie dollar looks set to extend its gains above last month's top around 82.80. Resistance at 82.35 provided by the 61.8% of last down leg from 86.20 to 76.20 is currently under pressure and a sustained break above the 82.35-82.80 resistance region would encourage further upside action towards 86. Meanwhile, potential pullbacks towards 81.20 or 80.00 should trigger more buying, maintaining the short-term sentiment positive. Current exchange rate is 82.45 @07:18 GMT

AUDJPY
AUDJPY daily chart 3-8-2010

NZDUSD

The falling trend line from .7075, now around .6970, has been breached - next objective being .7060/80, followed by .7150. Short-term sentiment is slightly bullish due to the recent break out above .6970 but some more gains are needed for the daily charts to turn positive, such as breaking above .7060/80. Pullbacks should be limited either by the former resistance trend line around .6970, or by .6910/30, so that the bullish structure remains intact. Current exchange rate is .7009 @07:18 GMT

NZDUSD
NZDUSD 4hrs chart 3-8-2010

Have a great week!