HIGHLIGHTS:

EURUSD: EUR On The Verge Of Invalidating The 13298 Level- Reversal off its recovery high at the 1.3799 level printed on Jan 08’09 continued for a second day in a row on Monday pushing the pair to low of 1.3358...

GBPUSD: A Third-Day Of Downside Weakness Turns Focus To The 1.4352 Level -With a run to the upside off its YTD low at 1.4352 ending at the 1.5374 level on Jan 08’09,price collapse to the downside  cleared key support levels at the 1.5000 level and the 1.4831 level, its Jan 01’08 to close sharply lower Monday at 1.4817…

EURUSD: EUR On The Verge Of Invalidating The 13298 Level.

EURUSD: Reversal off its recovery high at the 1.3799 level printed on Jan 08’09 continued for a second day in a row on Monday pushing the pair to low of 1.3358.EUR was seen trading below the 1.3298 level, its Dec 11’08 high/former range top in early morning trading today suggesting that a close below the said support will set the stage for a decline towards its Nov 25’08 high at 1.3081 accompanied by the 1.2551 level, its Dec 04’08 low and then its YTD low at 1.2330.This level remains the ultimate support where a break and hold will resume its medium term downtrend started at the 1.6038 level. The daily RSI remains bullish suggesting further downside weakness. On the upside, resistance levels are situated at the its Jan 06’09 low/Oct 30’08 high at 1.3313/1.3298 and the 1.3531 level, its Oct 20’08 high before the 1.3785 level, its Oct 09’08 high. On the whole, with the 1.3298 level now under attack, successfully breaking and holding below it will turn focus to the 1.2330 level.

Support       Comments

1.3081        Nov 25’08 high

1.2551        Dec 04’08 low

1.2330        YTD low

Resistance   Comments

1.3298        Dec 11’08 high/former range top

1.3531        Oct 20’08 high

1.3785        Oct 09’08 high