Quote of the day: Debt is the fatal disease of republics, the first thing and the mightiest to undermine governments and corrupt the people — Wendell Phillips

EURUSD

Trading strategy: standing aside

The euro trades around levels of 2006 as the decline continues on concern European measures to reduce fiscal deficits will undermine the Euro-zone's recovery and worries about the potential contagion from Greece's ongoing problems are fueling the sell-off. 1.2500 - level which could have provided a temporary support is now history and next objectives are set at 1.20 and 1.1750. Not far from current region is the 1.2130 - 50% retracement of .8225 - 1.6035 full move from 2000 to 2008. Resistance levels are formed at 1.2380/00 followed by 1.2500 and 1.2750. A corrective recovery should face solid selling around 1.2500, maintaining the current bearish structure intact. However, short-term sentiment remains highly bearish while the 1.300 level is intact, and a rally that far up is unlikely in current conditions. Current exchange rate is 1.2276 @06:10 GMT

Support: 1.2200, 1.2130/50, 1.2100 and 1.2000 Resistance: 1.2300, 1.2380/00 and 1.2500 Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bearish

EURUSD
EURUSD 4hrs chart 5-17-2010

GBPUSD

Trading strategy: standing aside

Cable lost 1.2% overnight, reaching a fresh low at 1.4250. Former support levels at 1.4500 and 1.4800 will probably provide resistance in case of pullbacks, short-term sentiment not being affected by potential rallies as long as 1.4800 is intact. Current exchange rate is 1.4371 @06:10 GMT

GBPUSD
GBPUSD 4hrs chart 5-17-2010

Other setups

Gold

XAUUSD
XAUUSD daily chart 5-17-2010

NZDUSD

NZDUSD
NZDUSD daily chart 5-17-2010

Have a good day!