EUR/USD:1.3227/30: Yesterday we sold the EUR for 50% of equity under 1.3135, for a move to 1.3190 as planned. Today we may want to sell again under 1.3240, for 50% of equity again for a possible move to 1.3185-90. Stop over 1.3276.

GBP/USD:1.9635/40: We sold yesterday, below 1.9610 for 25% of equity and exited at 1.9565. Today we may want to sell again under 1.9640 for 50% of equity, with a 40 pip stop for a 80 pip dip.

USD/CHF:1.2182/84: Today, we would like to buy 50% of equity here at 1.2185 after having rested yesterday, for proof of a”bottom” here. Keep stop at 1.2143. T/P at 1.2240.

USD/JPY:118.37/38: Yesterday we bought the Dollar close to 118.30, for 25%-50% of equity, with a stop below 117.80. The target objective zone of 118.80-118.90 has been reached this morning! We may now wait for a dip close to 118.40-50 to buy again, with a 30 pip stop for a 80 pip upthrust.

EUR/JPY:156.61/63:The 159.40 shorts were exited at 158.00. We would today wait for any spike close to 157.40 to sell again for 50% of equity and if done keep a 60 pip stop for a +100 pip dip.

After yesterday’s wild moves, the global financial markets spent the day licking its wounds. Although government officials from around the world tried to pacify the markets by suggesting that things may not be as bad as they seemed the degree of today’s recoveries indicate that traders may not be buying it. They will be reluctant to get back into the markets in force after having bailed out as quickly as they did. Federal Reserve Chairman Ben Bernanke confirmed his positive outlook on economic growth and indicated that the latest move in the stock prices will not alter the Fed’s plans for monetary policy. Yet, the real concerns about the US economy still remain. Fourth quarter GDP was revised lower form 3.5 percent to 2.2 percent. The price index was revised higher from 1.5 percent to 1.7 percent, but core PCE was revised down from 2.1 to 1.9 percent. Meanwhile, the National Association of Purchasing Management-Chicago said its business barometer slid, and US new home sales plunged 16.6 per cent in January to the lowest sales pace in four years, casting doubt that the housing sector has reached the bottom.
Meanwhile, after the sharp rally, the Yen gave back some of its monstrous gains. The breakdown triggered a new downtrend which was supported by last night’s comments of BoJ officials. Central bank Governor Fukui said last night that they need to keep raising interest rates while Mizuno noted that short term rates are “pretty accommodative” and as such, the central bank needs to push rates towards normalization. However economic data indicates that the country is struggling to recover.
Elsewhere, The British pound is stronger across the board thanks to solid housing market data. The UK’s Nationwide Building Society reported 0.7 percent rise in house prices in the month of February. The market was only looking for a 0.5 percent rise. Unfortunately consumer confidence did not improve along with it as the GfK report dropped from -7 to -8. Bank of England Deputy Governor Lomax warned today that inflation could fall sharply in the months ahead and take the rate below the central bank’s target by the end of the year.