HIGHLIGHTS:

EURUSD: Resolution To The Upside Leaves Range Top(Triangle 1.3298) As Next Target- 1.2914.With this break to the upside, our call for downside resolution has been annulled and the broader range top at 1.3298 is now targeted ahead of the pattern break out price objective at 1.3630 which also coincides with its .50 Ret(1.4867-1.2330 decline) at 1.3015...

USDCAD: Loses Up side Momentum, Eyes The 1.2121/12 1.1657.This development remains corrective of both its rise off the 1.1464 and the 0.9058 levels but a loss of the 1.1464 level will be an early warning of a medium term uptrend reversal as that break would confirm a potential double top(a top reversal pattern) which is now unfolding… 

Triangle Resolution To The Upside Leaves Range Top(1.3298) As Next Target.

EURUSD: EUR broke out its symmetrical triangle Monday moving to as high as 1.2960 before closing at 1.2914.With this break to the upside, our call for downside resolution has been annulled and the broader range top at 1.3298 is now targeted ahead of the pattern break out price objective at 1.3630 which also coincides with its .50 Ret(1.4867-1.2330 decline) at 1.3015.The daily studies are bullish and heading higher suggesting more strength. Support is now seen at the 1.2814 level, its Nov 19’08 high with a break through there opening the door for further declines towards the 1.2330 level and then the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart).On the whole, although the medium term downtrend is still valid, the present development has left the pair targeting the 1.3298 and 1.3630(breakout price target) levels.

Support         Comments

1.2814           Nov 19’08 high

1.2484          Oct’06 low

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

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