Daily analysis and trading strategies 5-6-10 for EUR/USD, GBP/USD, NZD, USD, USD/CAD, AUD/JPY and Gold

By IBTimes Staff Reporter | May 06 2010 3:04 AM

Quote of the day: Every wave, regardless of how high and forceful it crests, must eventually collapse within itself. - Stefan Zweig

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EURUSD

Trading strategy: standing aside

Another day, another leg down - the euro reached a fresh 15-month low at 1.2763 at time of writing, bringing the long-term support trend line from 1.1640 in focus, as per the monthly chart below. Protests in Greece against proposed austerity package turned deadly and pressure is likely to continue. More gas was thrown into the fire by Moody's Investors Service which warned Portugal it may downgrade its credit rating. Today's important events are the ECB Interest Rate Decision and the Press Conference, followed by the Initial Jobless Claims, Nonfarm Productivity and Bernanke's speech, in the U.S. The EUR charts show extreme oversold conditions in all time-frames and former support levels are likely to provide resistance on pullbacks, at 1.3000 and 1.3100. Current exchange rate is 1.2765 @06:23 GMT

Support: 1.2790/00, 1.2750 and 1.2700 Resistance: 1.2900, 1.3000, 1.3070/00 and 1.3140/50 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bearish