Mizuho Corporate Bank strategy

EURUSD

Comment: A mess around midnight London time took the Euro to a new high for this year at 1.4843 (Kiwi leading the way higher). The 9-day moving average limited the downside yesterday and will hopefully do so again today. Note that we are witnessing generalised US dollar weakness rather than Euro gains.

Strategy: Buy at 1.4800, adding to 1.4700; stop below 1.4600. Add to longs on a break above 1.4875 for 1.5000 medium term and more long term

Direction of Trade: →

Chart Levels:

Support	Resistance
1.4784 "	1.4843/1.4863*
1.475	1.4925
1.47	1.4956/1.4968*
1.4677	1.5
1.4600*	1.5085

GBPUSD

Comment: Very difficult as we bounce once again from trendline support, hovering nastily either side of 1.6350, yet still facing a potential 'head-and-shoulders' top. Be very careful, keeping in mind that open interest has collapsed.

Strategy: Possibly attempt tiny longs at 1.6390; stop below 1.6100. First target 1.6400, then 1.6600.

Direction of Trade: →

Chart Levels:

Support	Resistance
1.6357 "	1.6415
1.6275	1.6454
1.62	1.65
1.6134/1.6100*	1.66
1.5985	1.6664

USDJPY

Comment: Dropping towards 90.00 again, as expected, with nasty moves around 00:30 GMT. While below 92.00, which neatly capped the Lagging Span, and the nine-day average at 91.34 today downside pressure is maintained for a re-test of very important very long term support at 87.10. Note that the US dollar is not oversold.

Strategy: Attempt shorts at 90.75, adding to 91.25; stop well above 91.65. Short term target 90.35/90.00 and then scarily lower still.

Direction of Trade: →

Chart Levels:

Support	Resistance
90.65 "	91
90.47	91.19/91.34
90.18/90.00*	91.65
89.7	92.03
88.50*	92.55*

EURJPY

Comment: Taking a back seat as the US dollar gets hammered. Yen crosses are mixed with NZD/JPY hitting a new high for the year while this one retreats from the upper edge of the daily Ichimoku 'cloud'. Lets see if it will drop towards the moving averages at the end of this week.

Strategy: Attempt small shorts at 134.30/134.85; stop above 135.55. Add to shorts below 133.70 for 132.80 and then 131.00.

Direction of Trade: →

Chart Levels:

Support	Resistance
134.00 "	134.6
133.7	134.88
133.55	135.35
133.4	135.5
132.46	136.09

Mizuho Corporate Bank