Quote of the day: Good judgment comes from experience, and experience comes from bad judgment. - Barry LePatner

EURUSD

Trading strategy: small long at 1.2400, stop at 1.2330 (0.5% risk), objective at 1.2540

The dollar weakened across the board after China signaled an end to the yuan's fixed rate to the dollar, boosting confidence in the global economic recovery. The euro opened higher today, gaping above 1.2400 - level which provided intra-day resistance last Friday. Short-term sentiment is bullish and will remain unchanged while the euro trades above the 1.2150-1.2200 region. Minor pullbacks will probably face support around 1.2350/65 - then lower, at 1.2250 - while upside barriers are expected to emerge at 1.2500 and 1.2670 - which is a notable resistance formed by the top of May 21. Latest COT data shows that current euro recovery caused a massive short-covering - almost 50 thousand euro short contracts being covered, short position taking total shorts back to levels from mid April, when the euro was trading in the 1.30 range against the dollar. More upside action is in the cards for now - primary objective being 1.2670. Current exchange rate is 1.2455 @06:10 GMT

Support: 1.2400, 1.2350/65, 1.2300/30, 1.2250/70 and 1.2150 Resistance: 1.2500, 1.2670 and 1.2720/50 Market sentiment: long term - bearish, medium term - bearish, short term - bullish, intra-day - bullish

EURUSD
EURUSD 4hrs chart 6-21-2010
EURO
EURO COT 6-21-2010

GBPUSD

Trading strategy: standing aside

Cable managed to close slightly higher above 1.4800 last week, signaling that the ongoing recovery is not facing reversal levels yet. Therefore, 1.4800 is expected to provide support now - conserving momentum's strength on a short-term basis. Next important barrier comes at 1.5350 - formed by the downward trend line connecting last year's lows since 1.5985 of July 8th and this year's top side seen in April's pullback. Meanwhile, another important resistance is formed by the downward trend line started at 1.6875 in mid-November, last year - through next lower highs, currently around 1.5000. Current exchange rate is 1.4922 @06:10 GMT

Support: 1.4800, 1.4720/50, 1.4650/80, 1.4600, 1.4540 and 1.4500 Resistance: 1.4950, 1.5000 and 1.5100 Market sentiment: long term - bearish, medium term - bearish, short term - bullish, intra-day - bullish

GBPUSD
GBPUSD 4hrs chart 6-21-2010
GBPUSD
GBPUSD weekly chart 6-21-2010

Other setups:

Gold

Gold
Gold daily chart 6-21-2010

EURJPY

EURJPY
EURJPY daily chart 6-21-2010

Have a great day!