U.S. Dollar. Our bias BEARISH, we’ll be looking to sell on rallies.

U.S. Dollar Index had slumped to 74.29 by last weeks close on risk appetite flows
Dollars recovery likely to hinge on this Fridays NFP report
Support at 73.50, resistance 75.50
Implications are bearish for the Dollar in the coming weeks

Euro. Our bias BULLISH, we’ll be looking to buy on dips.

Euro closed at 1.4524 against the U.S. Dollar on Friday, rallying 300 points from Mondays open following Greece’s successful passing of a new deficit-reduction plan
ECB rate decision due this Thursday with expectations for a 25bp rate hike
Support at 1.4300, resistance 1.4600

Japanese Yen. Our bias NEUTRAL, on the sidelines till a clearer picture develops.

Japanese Yen weakened against most currencies last week on risk appetite flows
BoJ Governor Masaaki Shirakawa warns about the adverse effects of prolonged period of accommodative policy
Signs that a major USDJPY shift is at hand
Support at 80.00, resistance 81.00

British Pound. Our bias BEARISH, we’ll be looking to sell on rallies.

Last week, Sterling pushed higher against the Swiss Franc, Japanese Yen and U.S. Dollar on risk appetite flows
Busy eco calendar sees construction PMI, housing survey, services PMI, manufacturing production, BoE rate decision & producer price index on tap
Support at 1.5950, resistance 1.6150

Canadian Dollar. Our bias NEUTRAL, on the sidelines till a clearer picture develops.

Last week, the Canadian Dollar out-performed against the U.S. Dollar as the pair slumped some 300 points on better than expected CPI and GDP
Credit Suisse Overnight Index Swaps see interest rates to increase by more than 50bp over the next 12 months
Ivey PMI & employment report due this week
Support at 0.9575, resistance 0.9700

Australian Dollar. Our bias BULLISH, we’ll be looking to buy on dips.

Australian Dollar finished strongly on Friday against the major currencies on the global shift to risk-appetite
RBA rate decision & employment report due this week
Support at 1.0550, resistance 1.0780

New Zealand Dollar. Our bias BULLISH, we’ll be looking to buy on dips.

New Zealand Dollar surged against the U.S. Dollar last week, testing the record highs set back on 9th May on risk appetite sentiment
1Q 2011 GDP report due this week
Support at 0.8180, resistance 0.8300