Posted: 11 May 2011 06:45 AM PDT

Worse than expected US Trade Balance sent stocks and commodities strongly lower, while already struggling to remain positive before the data. EUR/USD is back below 1.4300, heading towards 1.4250 weekly low, before a test of 1.4140 key mid term support is seen. The 1.4140, represents the 382% retracement of this year bullish run. While USD/CHF will probably continue rising, won't expect USD/JPY to hold, and probably retreat again.

Here is the link to details for each pair:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2011/05/11/03/

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EUR/USD intraday bearish

Posted: 11 May 2011 04:20 AM PDT

Bearish momentum seems to be increasing in the pair, after failing again to ssutain gains above 1.4400; take a look at the 4 hours charts, with indicators heading south, and no bullish strength:

For more details, check my report:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/05/11/

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GBP steal EUR charm

Posted: 11 May 2011 04:01 AM PDT

I know not many follow my daily Webinar at 21:00 GMT, but if you do, you surely know that for the last couple of months, we have been talking about rate hikes being the carrot that moves the donkey: investors are running towards currencies with higher rate differentials or higher chances to hike rates in the short term.

While market priced in more than what may be real in Euro, and start selling the common currency as Trichet disappointed with his latest comments, today BOE's governor Mervin King rising the long term inflation forecast gave Pound a new attractive. GBP/USD rose back to 1.6500, adding over 100 pips in less than an hour, retreating slightly from the area with support now at 1.6440/50 area. As long as above this last, bullish bias will dominate the cross today.

Euro on contrary, has falied repeatedly to hold above 1.4400, changing to bearish in the short term, yet remember 1.4140 area is the break lower point for the midterm view.

Here is the link for today's calendar:

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

Have a great trading day!