HIGHLIGHTS:

EURUSD: Rejection Candle Triggers Recovery -EUR halted its recent declines started at the 1.4719 level, its Dec 18’08 Wednesday pushing to the upside to close higher at 1.3615...

GBPUSD: Corrective Recovery Eyes Further Higher Prices- GBP continues to gain further upside momentum closing higher for a third day in a row since rising off the 1.4378 low on Jan’02’09…

EURUSD: Rejection Candle Triggers Recovery.

EURUSD: EUR halted its recent declines started at the 1.4719 level, its Dec 18’08 Wednesday pushing to the upside to close higher at 1.3615.This is coming on the back of a formation of a rejection candle at the end of Wednesday session. This development now leaves the pair with the possibility of further corrective recovery towards the 1.3785 level, its Oct 09’08 high initially and then the 1.3882 area, its Sept 11’08 high. Above there should extend gains towards the 1.4363 level, its Dec 29’08 high. On the other hand, support comes at the 1.3298 level with a loss of there setting the stage for a run at its .618 Fib Ret (1.2330-1.4719 rally)support at 1.3244. The next two downside targets come in at its Nov 25’08 high at 1.3081 and its Dec 04’08 at 1.2848.While its short term uptrend started at the 1.2330 level has halted, a sustained break and hold below the 1.3298 level is required to resume its weakness triggered at the 1.4719 level.

Support        Comments

1.3531          Oct 20’08 high

1.3298          Dec 11’08 high/former range top

1.3244          .618 Fib Ret (1.2330-1.4719 rally)

Resistance       Comments

1.3785              Oct 09’08 high

1.3882/1.3900   Sept 11’08 high/.618 Ret.

1.4363               Dec 29’08 high