EURUSD

Trading strategy: standing aside

Even though it opened higher today, the euro fell during the Asian session on concern a 110 billion euro bailout package for Greece will fail to contain the region's sovereign-debt crisis. Short-term sentiment remains bearish as the pair failed to sustain a break above the minor resistance formed by the downward trend line coming from 1.3680, currently around 1.3290. A more notable resistance is seen above 1.3290 at 1.3450 - February's former support. Today's decline was halted into the 1.3200 support region - formed by the 61.8% of last up leg from 1.3115 to 1.3360. If it holds, a recovery towards Friday's close at 1.3300 may occur, but fresh selling is likely to emerge, capping the upside on minor rallies. Current exchange rate is 1.3246 @06:10 GMT

Support: 1.3200, 1.3150, 1.3100/15 and 1.3000 Resistance: 1.3280/00, 1.3350, 1.3400 and 1.3450 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bearish

EURUSD
EURUSD 4hrs chart 5-3-2010

GBPUSD

Trading strategy: standing aside

April's bottom into the 1.5150 region is in focus as cable is losing strength and 1.5500 has been a tough barrier. But so was 1.5150. Short-term momentum is slightly bearish and intra-day support starts at 1.5225/35 - 61.8% of last week's recovery from 1.5125 to 1.5390. Potential break down below the said level should open 1.5150, eventually 1.5075, as the downside is favored for now. Aggressive traders may look to buy into the 1.5100 region, since an extended decline could be corrective only. Current exchange rate is 1.5250 @06:10 GMT

Support:   1.5225/35, 1.5150 and 1.5075 Resistance: 1.5300, 1.5400 and 1.5500/20 Market sentiment: long term - bearish, medium term - bearish, short term - slightly bearish, intra-day - bearish

GBPUSD
GBPUSD daily chart 5-3-2010

Have a good day!