EURUSD

Trading strategy: small long at 1.2655, stop at 1.2585 (0.5% risk), 1st objective at 1.2705, 2nd objective at 1.2805

The euro rallied to $1.2738, the strongest since May, confirming that the decline to $1.2520/50 was corrective. Short-term sentiment remains bullish even though it was unchanged while the pair tested the lower side below 1.2600. While holding gains above 1.2500, trading comfortably near recent top at 1.2738, it's quite obvious that more upside action is in the cards and shorting when reversal signs do not exist it's a bad idea. Potential pullbacks will probably face intra-day support into the 1.2640/70 region. On the upside, an interim barrier is formed by the 50% of 1.3690-1.1875 at 1.2785. Next important resistance comes at 1.3000 which is both a psychological barrier and the 61.8% of the mentioned down leg from 1.3690 to 1.1875. Buying on dips or breakout are the best strategies for now. The Retail Sales at 13:30 GMT and FOMC Meeting Minutes at 19:00 GMT are today's notable events in the economic calendar. Current exchange rate is 1.2712 @06:10 GMT

Support: 1.2640/70, 1.2600, 1.2550 and 1.2500/20 Resistance: 1.2740/50, 1.2785/00, 1.2900 and 1.3000 Market sentiment: long term - bearish, medium term - bearish, short term - bullish, intra-day - bullish

EURUSD

EURUSD 4hrs chart 7-14-2010
EURUSD
EURUSD daily chart 7-14-2010

GBPUSD

Trading strategy: standing aside

Monday's breakdown below the rising trend line connecting last weekly bottoms proved to be false and cable is back into the upper territory, flirting with the 1.5225 resistance which is tested for 4th time in 3 weeks. Breakout seems imminent and 1.5500 will be the next objective if 1.5225/40 breaks. In case of a pullback, keep an eye on intra-day support around 1.5140 as it will probably provide a stable barrier. Current exchange rate is 1.5203 @06:10 GMT

Support: 1.5140/50, 1.5100, 1.5000, 1.4950 and 1.4850/80 Resistance: 1.5225/40, 1.5270, 1.5300 and 1.5500 Market sentiment: long term - bearish, medium term - bearish, short term - bullish, intra-day - bullish

GBPUSD
GBPUSD 4hrs chart 7-14-2010

More setups

AUDJPY

AUDJPY
AUDJPY daily chart 7-14-2010

AUDCAD

AUDCAD
AUDCAD daily chart 7-14-2010

EURCHF

EURCHF
EURCHF 4hrs chart 7-14-2010

Gold

Gold
Gold 4hrs chart 7-14-2010

Have a good day!