HIGHLIGHTS:

EURUSD: Pressure Continues To Build On The 1.2330 Level-EUR continues to close in on the 1.2330 level, its YTD low weakening further Wednesday to close session at 1.2458..

EURGBP: Breaks Out Of Its Medium Term Consolidation, Turns Focus To The 0.8497 High- EURGBP decisively broke and maintained above the 0.8187/0.8215 zone, its Sept 10’08/Nov 10 & 11’08 highs to close at 0.8412 on Wednesday…

Pressure Continues To Build On The 1.2330 Level

EURUSD: EUR continues to close in on the 1.2330 level, its YTD low weakening further Wednesday to close session at 1.2458.Our outlook for the pair is for a break and hold below the 1.2330 level with expansion towards the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart). Below there will call for more downside losses aiming at the 1.1827 level, its Mar’06 low and ultimately its Nov’05 low at 1.1640.The daily studies remain suggestive of further lower prices as they are trending lower.Conversely,resistance resides at the 1.2728 level, its Oct 22’08 low followed by the 1.3058/05 level, its Oct 23’06 high/.618 Ret (0.8231-1.6038 rally, monthly chart).The next two upside targets are located at the 1.3259/98 level, its Oct 30’08 high/Oct 10’08 low and then the 1.3666 level, its Dec’04 high. On the whole, the pair’s immediate focus remains on the 1.2330 with the resumption of its medium term weakness envisaged.

Support         Comments

1.2484          Oct’06 low

1.2330/24     Oct 28’08 low/Jan/April’06 highs

1.1827          Mar’06 low

Resistance    Comments

1.2728           Oct 22’08 low

1.2866           Jan’07 low

1.3058/05      Oct 23’06 high/.618 Ret (0.8231- 1.6038 rally, monthly chart)

1.3259/98      Oct 30’08 high/Oct 10’08 low