Quote of the day: Doubts are more cruel than the worst of truths. - Moliere

Trading strategy: looking to sell at 1.2800, stop at 1.2870(1% risk), objective at 1.2640

The euro is back near its recent low as Monday's correction was just a new opportunity for sellers to increase their bets against the euro. A short-term bounce of some sort will most likely face the same selling pressure and strength will be short-lasted, maintaining the current bearish structure intact. Intra-day sentiment is bearish too since the euro failed to breach 1.2750 even though it was tested several times yesterday. Break above 1.27 is required to signal a change in current intra-day view, but short-term studies will not change - more than 5 big figures to the upside being required to get into the neutral territory. Despite yesterday being a rather calm range comparing to what we've seen last week and Monday, extreme volatility is just around the corner. Current exchange rate is 1.2637 @05:56 GMT

EURUSD
EURUSD 4hrs chart 5-12-2010

Support: 1.2600, 1.2500/25 and 1.2400 Resistance: 1.2700, 1.2750, 1.2800, 1.2900 and 1.3050 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bearish

Other setups

Gold

Gold
Gold daily chart 5-12-2010

GBPUSD

GBPUSD
GBPUSD daily chart 5-12-2010

Have a good day!