EURUSD

Trading strategy: stand aside

Downside pressure intensifies as the US Unemployment Data favors dollar's recovery - printing 10% down from 10.20%, while the Nonfarm Payrolls came at a surprising -11k Vs. -115k consensus. As I mentioned in my morning article, from my experience - Fridays use to be positive for the dollar, either due to profit taking before weekends (in EURUSD up trends), either by low liquidity a few hours before closing trading hourly, or for various other reasons, more or less random. Although current drop in EUR is notable, we are far from calling it a trend reversal. On an intra-day basis, more downside is likely - while the EUR may face barriers on extended rallies towards former support into the 1.5000/50 range. Current exchange rate is 1.4948 @14:25 GMT

EURUSD
EURUSD daily chart 12-4-2009

GBPUSD

Trading strategy: stand aside

Cable also suffers after its last upside attempt, falling for 135 points - back below the 1.66 handle, I'd say enough to clear most of the weaker stops. While 1.67 is intact, expect more of the same 'sell into rallies' habit. Although it is recovering while writing these lines, the danger of more downside action is still near and I feel that 1.6400 will be a decent bearish target within the coming days - if not today, but you never know... However, I call it a day and will be back in the weekend, updating my short-term outlook article.

GBPUSD
GBPUSD 4hrs chart 12-4-2009