Posted: 07 Apr 2011 02:59 AM PDT

These are the levels to watch, for EUR/USD

Supports: 1.4260, 1.4220 1.4170

Resistances:1.4300, 1.4335 1.4380/1.4400

and for USD/JPY

Supports: 84.80 84.50 84.20

Resistances: 85.30 85.65 86.10

As usual, give the market a couple of 15 minutes candles after the news are released, to decide a trade.

Best pair to trade now: GBP/USD

Posted: 07 Apr 2011 02:56 AM PDT

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/04/07/

Starting the day

Posted: 07 Apr 2011 02:41 AM PDT

Hi everyone, welcome back. Day has come, ECB and BOE will made their economic policy announcements in a couple of hours. We are not expecting too much action in the UK, but we should never disccard a surprise. Hawkinsh comments from different BOE's members over the past couple of months had ease lately, so chance of a movement there is quite low. On contrary, market has already priced in a 0.25bp in the euro zone. Attention then, will be focus on upcoming Trichet's speech, and any clues about furhter (or not) rate hikes. I believe that if the ECB announces this is only the first of a series of hikes, Euro should resume its bullish trend despite sovereign debt woes. Still better stay out for now, and wait for the outcome.

Past Asian session, BOJ left rates unchanged in Japan, while Governor Shirakawa said they will start a new loan scheme for banks hit by the earthquake in May; USD/JPY remains steady above 85.00, with yen slightly higher against major rivals.

Euro is losing some ground, currently around 1.4280, guess some position adjustment ahead of news is driving the movement. Anyway, I will be covering live, the news, at Fxstreet.com home page, staring in 1 hour.

Here is the link for today's calendar:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great trading day!