EURUSD - 1.3630 @06:50 GMT

Trading strategy: looking to sell at 1.3710, stop at 1.3770 (0.5% risk), 1st objective at 1.3650, 2nd objective at 1.3560. A secondary plan I'm considering is to sell at 1.3590 with a stop at 1.3650 and target at 1.3500

Good morning. The euro looks vulnerable today, ahead of the Non-Farm Payrolls release, after Trichet failed to deliver the hawkish comments priced in by the market. Therefore, what's left to support euro's appreciation if not the potential rate hike? Debt monetization? for some reason - the market has priced in both.
Another important event today is the EU leaders meeting in Brussels to discuss the Euro-zone debt problems. If we check the daily charts, we can see that the uptrend is not really affected by yesterday's decline but we are again looking for a catalyst to propel the euro back above 1.3750. The story is different if we look at the weekly chart and I'll discuss it in one of my next posts. Since it is Friday and there's the Unemployment Data coming out later, I tend to expect some selling on rally ahead of 1.3750, maybe in the 1.3700-1.3730 range, or even a break below 1.36 without testing any upside levels first.

Support: 1.3600/30, 1.3575/00, 1.3500/30 and 1.3400
Resistance: 1.3700, 1.3730, 1.3800 and 1.3860
Market sentiment: long term - mixed, medium term - bullish, short term - bullish, intraday - bearish

EURUSD daily chart 2-4-2011
EURUSD 4hrs chart 2-4-2011
EURUSD weekly chart 2-4-2011