Wednesday, March 17, 2010

EUR/JPY Today

EUR/JPY is retesting 125.00, which is the upper end of its range since February and also retracement resistance, says Trader. However, with very mixed technical signals around she favors playing the range by selling at 124.90 with a stop above 125.65, and taking profit down at 123.80 and 122.00. EUR/JPY now trades at 124.70.

EUR/USD ...Trend..Still weak

Chances are that the EUR/USD will get some near-term help from the Eurogroup's emergency funding pool for Greece and S&P's decision to drop the country from its negative watch list. But, warns Credit Agricole, "further out, the EUR is likely to weaken as the noose of fiscal/debt worries and relatively slower growth gradually tightens."

GBP/USD Today

GBP/USD made strong gains Tuesday and has started to erode its downtrend says analyst. It's now at 1.5255. The spot faces immediate resistance at 1.5275 and a break above here should trigger a deeper retracement toward 1.5575 and 1.5690. Alternatively, failure to overcome 1.5275 leaves the rate vulnerable toward Tuesday's low of 1.4975. GBP/USD now trades at 1.5215.