EUR/USD Today

EUR/USD's fall was contained at 1.4272 and rebounded strongly. The development indicates that correction from 1.4217 is still in progress and intraday bias is flipped to the upside for 1.4457 and above. Nevertheless, we'd still expect upside of the consolidation to be limited by 38.2% retracement of 1.5143 to 1.4217 at 1.4571 and bring resumption of fall from 1.5143. Below 1.4272 will flip intraday bias back to the downside. Further break of 1.4217 will target retracement of 1.2329 to 1.5143 at 1.4068 next.

Pound Today

GBP/USD recovers strongly after diving to 1.5829 earlier today. At this point, At this point, short term outlook will remain bearish as long as 1.6064 resistance holds and GBP/USD is still expected to fall further to 1.5706 cluster support next retracement of 1.3503 to 1.7043 at 1.5691. On the upside, though, break of 1.6064 will indicate that a short term bottom is formed, possibly with bullish convergence conditions in 4 hours MACD and stronger rebound should then be seen.

Euro Today

EUR/USD showed little reaction to he Case-Shiller Home Price Index for October, holding on to its earlier gains. EUR/USD was at 1.4437 Tue from 1.4384 late Mon. Markets are thin as activity winds down at year-end, with most investors already having closed their books for 2009.

Pound Today

Upside correction is expected till 1.6140 levels where shorts can be initiated for the target of 150 -200 pips keeping stoploss above 1.6220 level.Short term bias still remains bearish till 1.5750 levels untill 1.6200 level is held.

Euro Today

Immediate resistance is the downward trend line that is passing at 1.4412. If this level is broken up, we can expect ascending continuation. Strengthening above 1.4412 will signal for the growth of the currency couple.

YEN Today

The dollar has rallied significantly in December and is sticking close to the two-month peak it reached last week against the yen. It's also holding on to most of its December gains against the euro and other currencies.