Trading strategy: small long at 1.2130, stop at 1.2060 (0.5% risk), objective at 1.2250

The euro recovered 300 points last week, getting into a relatively safer territory above the 1.2000 handle with support freshly formed at 1.2150 - level which provided a stable bottom in the 2nd half of May. Below 1.2150, next downside barrier to watch is 1.2070/00 and while the euro holds above these two, short-term sentiment will remain positive - next upside objective coming at 1.2350. However, there's a good chance that the current bounce is only a corrective cycle, so we should not look too far up and stay focused on signs indicating the end of this correction - resuming downtrend. Current exchange rate is 1.2193 @06:45 GMT

Support: 1.2150, 1.2070/00, 1.2000, 1.1960/80 and 1.1875/00 Resistance: 1.2200, 1.2250/60, 1.2300 and 1.2350 Market sentiment: long term - bearish, medium term - bearish, short term - slightly bullish, intra-day - bullish

EURUSD 4hrs chart 6-14-2010

I'll be back later today with some more pairs and setups. Have a good day!