HIGHLIGHTS:

EURUSD: Turns Off Ahead Of The 1.2330 Level, Back Into Its Sideways Range- Having turned sharply higher ahead of the 1.2330 level, its YTD low, EUR is now back into its 1.3298 and 1.2330 sideways trading range after resolving to the downside from its 4 Hourly triangle on Tuesday..

GBPUSD: Prints A Reversal Candle After Testing A Low Of 1.4558- A long legged doji-like reversal candle has halted the pair’s decline off the 1.6673 level, its Oct 30’08 high and taken back its intra day losses on Thursday … 

Turns Off Ahead Of The 1.2330 Level, Back Into Its Sideways Range.

EURUSD: Having turned sharply higher ahead of the 1.2330 level, its YTD low, EUR is now back into its 1.3298 and 1.2330 sideways trading range after resolving to the downside from its 4 Hourly triangle on Tuesday. Break either way is needed to create meaningful directional moves. However, we still see the pair heading lower out of the said range based on its bearish medium term trend. Resistance on a follow-through higher will expose the 1.3058/05 level, its Oct 23’06 high/.618 Ret (0.8231-1.6038 rally, monthly chart) before the 1.3259/98 level, its Oct 30’08 high/Oct 10’08 low and next the 1.3666 level, its Dec’04 high.Alternatively,support levels rest at the 1.2728 level, its Oct 22’08 low initially and later the 1.2330 level with a break of there taking price towards the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) and the 1.1827 level, its Mar’06 low. On the whole, with reversal ahead of the 1.2330 level seen, EUR should continue its consolidative price activities between the 1.2330 and the 1.3298 levels.

Support        Comments

1.2728         Oct 22’08 low

1.2484         Oct’06 low

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

1.1827         Mar’06 low

Resistance    Comments

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