Here are four good reasons listed in the chart below why our 1.3355-75 zone will hold, at least on the first time down. Should we see it tonight, my bids at 1.3368 and 1.3355 below will be standing by with a 1.3347 stop attached to it.

I say first time down, because I believe this 1.3370 will ultimately go down in flames on the way to a sub-1.3000 move. But that move likely comes in the second half of 2007. For tonight, the initial take-profit and stop move level is 1.3405 on whatever we're long. Don't forget we have Non-Farm Payrolls Friday morning in New York, so it's possible the markets could go quiet (yes, even more so than they already are) in the next 36 hours.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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