EURUSD - 1.3719 @06:44 GMT

Trading strategy: looking to buy at 1.3760, stop at 1.3710 (0.5% risk), 1st objective at 1.3810, 2nd objective at 1.3900

Good morning. The euro reversed after touching lows below 1.3600 and returned into the North territory - tricking those of us who were looking for a larger correction. Therefore, my yesterday plan to look for a selling opportunity at 1.3660 was a bad idea and current market conditions force me to reexamine last week's plan to jump in bulls train if price breaks above 1.3750. Well, it's definitely worth keeping both eyes on 1.3750 as more short-covering should provide fuel for further upside action. The US ISM Manufacturing Index, German Unemployment and Trichet's speech are some of today's most important events in the Forex Calendar.

Support: 1.3650, 1.3575/00, 1.3530, 1.3430/50, 1.3360 and 1.3300
Resistance: 1.3730/50, 1.3800 and 1.3900
Market sentiment: long term - mixed, medium term - mixed, short term - bullish, intraday - bullish

EURUSD hourly chart 2-1-2011
EURUSD daily chart 2-1-2011