EURUSD

Trading strategy: standing aside

The euro starts the new month under pressure, losing against its major counterparts. Support at 1.2150 held but so did the resistance at 1.2300 - formed by the 50% retracement of last down leg from 1.2465 to 1.2150. Lower highs and lower lows have been formed on the 4-hrs charts since reaching 1.2465 last week, therefore the preferred scenario is to sell on rallies as long as they do not overcome the 1.2390 region. Break down below 1.2150 would confirm that the euro is not into a corrective phase so keep an eye on the said downside barrier if it will be tested again. Employment will be the dominant theme in today and tomorrow's economic calendar. Current exchange rate is 1.2216 @05:50 GMT

Support: 1.2200, 1.2150, 1.2100 and 1.2000 Resistance: 1.2300, 1.2360 and 1.2400 Market sentiment: long term - bearish, medium term - bearish, short term - slightly bullish, intra-day - bearish

EURUSD
EURUSD 4hrs chart 7-1-2010

GBPUSD

Trading strategy: small short at 1.5020, stop at 1.5090 (0.5% risk), 1st objective at 1.4960, 2nd objective at 1.4800

1.5000 was breached but cable's decline is moderate (so far). 1.4900 provides intra-day support, backed by a more notable barrier at 1.4800. Upside pullbacks may provide new selling opportunities as more downside is currently favored as long as 1.5000-1.5050 limits gains. Short-term sentiment remains bullish while above 1.4800. Current exchange rate is 1.4924 @05:50 GMT

Support: 1.4900, 1.4850, 1.4800 and 1.4700/20 Resistance: 1.5000/20, 1.5100/20, 1.5200 and 1.5250/70 Market sentiment: long term - bearish, medium term - bearish, short term - bullish, intra-day - bearish

GBPUSD
GBPUSD 4hrs chart 7-1-2010

Other setups

EURGBP

EURGBP
EURGBP 4hrs chart 7-1-2010

EURCHF

EURCHF
EURCHF 4hrs chart 7-1-2010

Gold

Gold
Gold 4hrs chart 7-1-2010

Have a great day!