EuroEUR-USD @ 1.4711/14...Support region 1.4636-11
R: 1.4783-4809 / 1.4864-78 / 1.4894-4902
S: 1.4636-11 / 1.4578

Euro has remained ranged through yesterday between 1.4670-1.4760. A fall further towards the next crucial Support region between 1.4636-10 is still awaited. This Support region houses the 100-DMA (1.4636), channel Support on the daily candles (click on the graph link below), 21-week MA (1.4610), 38.2% retracement of the rise from 1.3747 (Jun 09 low) to 1.5144 (Nov 09 high) at 1.4611. We continue to look at opportunity to go Long. To see the chart of Euro, click on the following link: http://www.kshitij.com/graphgallery/eurcandle.shtml#candle

The Projected Max High and Low for the day is at 1.4810 and 1.4627 respectively.

Limit Buy Order:
Buy EUR 10K at 1.4640, SL 1.4560, TP Open

YenUSD-JPY @ 87.82/85...Might dip further
R: 88.00 / 88.35-55 / 89.20
S: 87.60 / 87.00-86.85 / 86.30

The Resistance at 88.50 mentioned earlier has held and Dollar-Yen has fallen in the Asian session today from the high of 88.38 and is now trading below 88. As mentioned earlier, we might see a downmove towards 87 or even lower in the coming sessions/days as the pair is not looking strong on its upmove. On the upside Resistance is seen in 88.35-55 region which we expect to hold if any sharp upmove above 88 is seen once again during the day.

EuroYenEUR-JPY @ 129.21/26...Support at 128.50
R: 131.29 / 131.64-96 / 132.97
S: 128.44 / 127.92 / 127.00

The Cross has moved zig-zag between 128.80-130.50 through yesterday. We shall have to see if the Support at 128.50 holds today as well, else the pair may drift towards 127.00 in a couple of more days. The Projected Max High and Low for the day is at 131.29 and 128.44 respectively.

With the yield differential between Euro bunds and JGBs in a downtrend, it can pull the currency pair along with it. Though the pair had been resilient to the gradual decline in yield differnentials since June '09, it may not hold for long. To see the chart of interest differential, click on: http://www.kshitij.com/graphgallery/eurjpydiff.shtml#eurjpy

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