EUR/USD, GBP/USD - Daily analysis and trading strategies 5-4-10

Trading strategy: standing aside

The euro lost more than 1% against the dollar yesterday and the opening gap at 1.3360 was a good opportunity for sellers to initiate their positions again. 1.3200/10 provides intra-day resistance after holding for few hours, as support. In case of a bounce 1.3260/80 might be the first region where to look for selling opportunities, followed by 1.3400 a bit higher. Downside barriers are emerging at 1.3150 then at 1.3100/15 lower, eventually the psychological support at 1.300. Short-term sentiment remains bearish while the pair trades below 1.3500 and the intra-day momentum is bearish too. Current exchange rate is 1.3176 @06:20 GMT

Support: 1.3150, 1.3100/15 and 1.3000 Resistance: 1.3200/10, 1.3260/80, 1.3350 and 1.3400 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bearish

EURUSD 4hrs chart 5-4-2010

GBPUSD

Trading strategy: looking to buy at 1.5150, stop at 1.5080 (1% risk), objective at 1.5300

Yesterday's recovery attempts were limited into the 1.5250/70 region and support at 1.5200/10 is again in focus as cable weakened, making the 1.5125/50 support - last month's bottom an attractive target. A potential break down below 1.5150 would be an important bearish confirmation, opening 1.5000. On the upside, break above 1.5400 is needed to confirm that uptrend resumes. Current exchange rate is 1.5234 @06:20 GMT

Support:   1.5200/10, 1.5125/50 and 1.5075 Resistance: 1.5250/70, 1.5300, 1.5400 and 1.5500/20 Market sentiment: long term - bearish, medium term - bearish, short term - slightly bearish, intra-day - bearish

GBPUSD 4hrs chart 5-4-2010

Other setups:

EURJPY

Short-term uptrend started in March losing strength below two trend line resistance zones. Pullback to 122.50 likely.

EURJPY daily chart 5-4-2010

AUDUSD

The Aussie is pulling back despite today's 0.25% rate increase. .9150 provides important short-term support and likely a buying on dips opportunity, if reached.

AUDUSD 4hrs chart 5-4-2010

USDCAD

1.0190/00 is still a tough resistance but upside is slightly favored as the U.S. dollar managed to recover from the .9950 region, stabilizing above 1.0100 for now. Potential break above 1.0200 might provide a buying opportunity with objectives at 1.0300, eventually 1.0400.

USDCAD daily chart 5-4-2010

Have a good day!