EUR: Possibly attempt small longs at 1.4875; stop below 1.4700

Nicole Elliott from Mizuho Corporate Bank at 11/13/09

Comment: Yesterday’s ‘bearish engulfing’ candle suggests we can ‘look forward’ to consolidation roughly between 1.4700 and 1.5050 for another two weeks. We continue to feel that at-the-money implied volatility should increase towards month-end.

Strategy: Possibly attempt small longs at 1.4875; stop below 1.4700. Short term target 1.5000/1.5055.

Comment: Hovering above the Ichimoku ‘cloud’ and quite frankly, does anyone care?

Strategy: Attempt shorts at 134.35/135.00; stop above 135.75. Short term target 133.00, then 132.00.

Comment: Almost too textbook to be true! Cable held above immediate trendline support and the 9-day moving average, forming a ‘doji’ candle in the process. This should help it move back toward 1.6750/1.6800 again.

Strategy: Buy at 1.6615; stop below 1.6500. First target 1.6700/1.6750.

Comment: As thought, Wednesday’s small ‘spike low’ led to a tiny short squeeze yesterday. Moving averages will hopefully cross to bearish today or next week so that eventually we ought to break lower. Continue to allow for consolidation at current levels today.

Strategy: Sell at 90.30; stop above 90.75. Short term target 89.65, eventually 88.25.