For January 5th 2010

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Any information contained in this document are based on or derived from information generally available to the
public from sources believed to be reliable. There’s no representation or warranty is made or implied that it is
accurate or complete. Any opinions expressed are subject to change without notice. This post has been
prepared solely for information purposes and does not constitute any solicitation to buy or sell any instrument,
or to engage in any trading strategy.

Charts were generated using Alpari UK’s MetaTrader 4.0

 EURUSD
EURUSD rallied on Monday, hitting 1.4455 just below the previous swing high at
1.4458. It suggests that the correction of the recent fall towards 1.4217 is still
unfolding. To further confirm this view, the pair should make a clean break above
1.4458, otherwise risking a double top pattern that will sink the single currency
below 1.4217.

At the moment, the price has been hovering around the 23.6% fibo retracement
of the Monday’s rally at 1.4409. Supports are seen below at 1.4379, 1.4356,
1.4333, and 1.4303. Above 1.4458 there will be resistances at 1.4497 and
1.4645.

For today, look to buy dips between 1.4379 and 1.4303. Stop should be set
below 1.4300 while setting the target at 1.4458, 1.4497 and 1.4645.
 GBPUSD
Cable fell instead on rallied on Monday. The pair is now around 1.6080s and has
so far retraced the gains from 1.5831 by 38.2%. Hourly chart shows that a
potential double top is forming with the trigger point at 1.6057. Below this
trigger point, we could see nearly 200 pips fall that would send cable back to test
1.5831 low.

Several support lines based on the fibonacci retracements are lining up at

1.6036, 1.5987 and 1.5928. Resistances are based on prior swing highs at
1.6130 and 1.6195. Look to enter short once the pair falls below 1.6057 with
stop set above 1.6130, aiming for mid-1.5800s area. The alternative entry would
be to enter short on corrective upticks towards 1.6195 with stop set above
1.6241.
 USDJPY
USDJPY tumbled to 92.17 before it rebounded towards 92.68 where fibo
projection and retracement levels intersect. While it is too early to say that the
rally is over, the pair will be under pressure if the support at 92.17 makes way,
risking for a retest of 91.90 low.

Upside, resistance is seen at 92.68, then 92.81-92.88 area. Higher we have

92.96 and finally 93.19/93.21. Bearish daily candle suggests that it is likely for
the pair to resume its fall today. So, look to short with stop set above 92.68 with
objective set at 91.22.