2010-01-06 Morning session commentary

There were two trade opportunities today.
First, when EU ran out of steam on retracemet after preopen plunge, it was around 38% level, there was short setup on both EU and EJ based on my preopen analisys. This trade however turned out to be loosing one.

Second trade was based purely on higher bottom on GU and GJ, both pair had potential of 60 pips gain, what was double success, as I expected up to 40 pips trade on GU and predicted 148 as a target price, that was taken.

2010-01-06 Morning session preparation

EU: quite unusual drop just before market open suggest further drops, however expect price to retrace to 1.4320 - 34 lvl before that. Don't trade above 34.

EJ: may be nice shorting alternative with 131.25 daily low. If broken may give next 50 pips decrease.

GU: on steady fall, it may either retrace or move sharply lower. If traded I would not expect much of a move today [30-40 pips].

GJ: this pair needs to retrace badly, so expect it today, but bare in mind that GJ is on general downtrend, so treat 148 as a possible top for today. [148.30 is 50% lvl of last 2 days move.]