HIGHLIGHTS:

EURUSD: Develops Symmetrical Triangle Within Its Broader Sideways Range- Having maintained a trading range between the 1.2330 level, its YTD low, and the 1.3259/98 levels, its Oct 30’08 high/Oct 10’08 low ,a symmetrical triangle has now formed and a break either way within the mentioned range is now envisaged...

GBPUSD: Begins Nearer Term Recovery Of Its Recent Declines, Eyes A Retest Of The 1.5265  Level- Reversal of intra day losses Tuesday ahead of the long legged doji-like candle(reversal signal) highlighted in our previous analyses now suggests corrective strength towards its Oct 24’08 low at 1.5265 may occur...

Develops Symmetrical Triangle Within Its Broader Sideways Range.

EURUSD: Having maintained a trading range between the 1.2330 level, its YTD low, and the 1.3259/98 levels, its Oct 30’08 high/Oct 10’08 low ,a symmetrical triangle has now formed and a break either way within the mentioned range is now envisaged. Our overall bias remains for the pair to break below its recent medium term low at 1.2330 from its present consolidation activities exposing the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) and the 1.1827 level, its Mar’06 low. Its daily studies are pointing lower supporting this scenario. Upside targets are located at the 1.3058/05 level, its Oct 23’06 high/.618 Ret (0.8231-1.6038 rally, monthly chart) ahead of 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, we maintain our downside resumption view of its medium term weakness from the 1.6038 level.

Support          Comments

1.2484           Oct’06 low

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

1.1827           Mar’06 low

1.2134           .50 Ret (0.8231-1.6038 rally)

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