HIGHLIGHTS:

EURUSD: Recovery Started At The 1.2423 Level Remains in Force-The short term range break out trigger resides here with a break through there though not envisaged at this stage accelerating additional upmove towards its triangle break out price objective at 1.3630...

GBPUSD: Digests Upside Gains, Keeps Focus On Further Strength- While digesting those gains, we expect the pair to hold above the 1.5250/65 area and initiate further upmove towards the its Nov 10’08 high at 1.5885 and then its .382 Ret(1.8669-1.4558 decline) at 1.6130… 

Recovery Started At The 1.2423 Level Remains in Force

EURUSD: Although recovery off the 1.2324 level failed to push further higher Wednesday turning the pair back down to close lower at 1.2895,as long as the 1.2814 level, its Nov 19’08 high continues to maintain as support, EUR should head further higher targeting its Nov 25 & 05’08 highs at 1.3081/1.3116.A clearance of there will set up the pair for a run at its range top at 1.3298.The short term range break out trigger resides here with a break through there though not envisaged at this stage accelerating additional upmove towards its triangle break out price objective at 1.3630.The daily studies are bullish and pointing higher supporting this scenario. On the downside, below the 1.2814 level, its Nov 19’08 high will put the present upside recovery on hold and bring declines towards the 1.2423 level followed by the 1.2330 level, its YTD low where a break lower will trigger the resumption of its overall MT declines towards the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart).On the whole, having triggered a recovery off the 1.2423 level, EUR looks to push for further upside gains.

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