EURUSD

Trading strategy: small short at 1.2450, stop at 1.2510(0.5% risk), objective at 1.2350

Yesterday's recovery was capped at 1.2400 but upside is favored for now, an uptrend being formed on the hourly chart. A trend line resistance is currently seen into the 1.2370 region, coming from 1.3095 of May 10, extended through last week's top. However, even if this minor resistance will be breached, the short-term sentiment will remain bearish as the pair trades only 200 points above the recent bottom. On the lower side, first support is formed around 1.2300 and a potential break down below the said level would violate the intra-day uptrend, resuming the decline. Current exchange rate is 1.2343 @07:10 GMT

Support:1.2300, 1.2200, 1.2130/45 and 1.2000 Resistance: 1.2400, 1.2430/50, 1.2470/00, 1.2550 and 1.2620 Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bullish

EURUSD
EURUSD hourly chart 5-28-2010
EURUSD
EURUSD 4hrs chart 5-28-2010

AUDUSD

The scenario I mentioned 2 days ago is still in play as the Aussie dollar confirmed the support into the .8200-.8300 region and recovered, aiming the .8500 handle. No signs of exhaustion are seen yet, therefore current recovery is likely to continue - next objective being .8700. In case of pullbacks, first support comes at .8400. Current exchange rate is .8510 @07:10 GMT

AUDUSD
AUDUSD 4hrs chart 5-28-2010