Analysis and forecasts - Thursday 07.02.2009

EURUSD

Yesterday's boost to as high as 1.4200 - above last month's top at 1.4140 is seen as a bullish confirmation of current trend and the overnight pullback to 1.4100 is corrective, so far, support being formed at.14100 by the 50% retracement of yesterday's move from 1.4000 to 1.4200. The euro attempts to stabilize above the 1.4100 mark at the time of this writing. In case 1.4100 holds, upside targets could be challenged first at 1.4200 - yesterday's top, then higher - at 1.4250 - interim resistance on the way towards the yearly top at 1.4340. Upside is favored for now, while above 1.4100. Below that, extended losses may extend to 1.4000. Current quote is 1.4117 @06:00 GMT

Support levels: 1.4100, 1.4000, 1.3950 and 1.3900/10
Resistance levels: 1.4150, 1.4200 and 1.4250
Market sentiment: long-term : bearish, mid-term : bullish, short-term : slightly bullish

Yesterday recommended trade: stand aside

AUDUSD

The Aussie dollar has given back yesterday's gains as the US dollar is slightly stronger across the board. Minor resistance is now seen at .8100 followed by .8140/50 and the recent top into the .8230-.8260 zone. Intra-day sentiment is bearish due to the overnight 70 points pullback. Extended losses may reach lows around .7930/50 where first notable support is seen, backed lower by .7850. Daily momentum is positive. Current quote is .8042 @06:00 GMT

Support levels: .8000, .7930 and .7840/50
Resistance levels: .8100, .8155/85, .8235 and .8260
Market sentiment: long-term : bearish, mid-term : bullish, short-term : slightly bullish

Yesterday recommended trade: stand aside

EURCHF

Initial support at 1.5235 has been cleared out and the euro continues to lose ground versus the swiss franc, testing bids around the 1.5200 handle at the time of this report. 1.5150 is the next bearish objective and it may limit the downside for now. Current quote is 1.5200 @06:00 GMT

Support levels: 1.5190/00, 1.5140/50 and 1.5100
Resistance levels: 1.5285, 1.5325 and 1.5380/00
Market sentiment: long-term : bearish, mid-term : bearish, short-term : bullish

Yesterday recommended trade: stand aside