Trading strategy: small long at 1.4430, stop at 1.4380 (0.5% risk), 1st objective at 1.4480, 2nd objective at 1.4530

The euro bounced off short-term support into the 1.4270 region on Friday's NFP data release which came at -85k, a surprising negative figure since most expectations were for a neutral - slightly positive number. Euro's Friday recovery has extended to as high as $1.4438  - above intra-day resistance formed by the 1.4400 handle, resuming the rally today - up to 1.4533. The daily close above 1.4400 is significantly bullish, thus re-bringing 1.4500 top side in focus - and above this confirms the end of the consolidation cycle started in late December. Short-term sentiment is positive now that the bearish flag formation's upper band is being tested and a break out is likely, following the bullish flag's violation in the inversely correlated USDCHF or the USD Index. Downside barriers are now seen into the 1.4400-1.4450 region, backed by a more notable support at 1.4300 and by the 200 days SMA coming lower, around 1.4250. Current exchange rate is 1.4510 @07:10 GMT

Support: 1.4450, 1.4400, 1.4300 and 1.4250
Resistance: 1.4520/50, 1.4600 and 1.4700
Market sentiment: long term - bullish, medium term - slightly bullish, short term - bullish, intra-day - bullish

EURUSD 4hrs chart 1-11-2010
USDCHF daily chart 1-11-2010


Trading strategy: small long at .7345, stop at .7295 (0.5% risk), 1st objective at .7395, 2nd objective at .7445

The kiwi dollar opened higher against the buck and currently trades few points below the .7400 handle. Upside is favored although a minor pullback to fill the gap may occur before resuming uptrend, eventually. On the higher side, resistance starts at .7430 followed by .7500 while on the downside, intra-day support is emerging at .7350, backed by .7300 and .7250/85. Current exchange rate is .7393 @07:10 GMT

Support: .7350, .7300 and .7250/85
Resistance: .7430/50, .7500 and .75600/30
Market sentiment: long term - bullish, medium term - bullish, short term - bullish, intra-day - bullish

NZDUSD daily chart 1-11-2010

Have a great day!