HIGHLIGHTS:

EURUSD: EUR Flirts With The 13298 Level - Although a break and close below the 1.3298 level, its Dec 11’08 high/former range top was seen on Tuesday, early morning trading today saw the pair testing above that level...

GBPUSD: Builds Up To Retarget The 1.4352 Level- A third-day of consecutive downside losses following the pair’s failure at the 1.5374 high has now opened up downside risk towards its YTD low at 1.4352…

EURUSD: EUR Flirts With The 13298 Level.

EURUSD: Although a break and close below the 1.3298 level, its Dec 11’08 high/former range top was seen on Tuesday, early morning trading today saw the pair testing above that level. A continued hold below the 1.3298 level is required to drive prices further lower 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.The falling channel now in place on the daily chart also supports the pair’s downside view. The daily stochastics remains bearish to oversold. Upside objectives are located 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 falling channel now in place and the decline from the 1.4719 level remaining in force, EUR is susceptible to the downside.

Support          Comments

1.3081            Nov 25’08 high

1.2551            Dec 04’08 low

1.2330           YTD low

Resistance    Comments

1.3298            Oct 30’08 high/ Jan 06’09 low

1.3531            Oct 20’08 high

1.3785            Oct 09’08 high