HIGHLIGHTS:

EURUSD: Invalidation Of The 13298 Level Highlights The 1.3081 Level And Beyond- Having convincingly invalidated and held below the 1.3298 level, its Dec 11’08 high/former range top, focus has now turned to its Dec 04’08 low at 1.3081...

GBPUSD: Pressure On The Downside Towards The 1.4352 Level Remains In Progress- Despite a one-day of marginal gain on Wednesday ,pressure for price declines targeting its YTD low at 1.4352 low remains in progress…

EURUSD: Invalidation Of The 13298 Level Highlights The 1.3081 Level And Beyond.

EURUSD: Having convincingly invalidated and held below the 1.3298 level, its Dec 11’08 high/former range top, focus has now turned to its Dec 04’08 low at 1.3081. A turn below the latter is expected to drive the pair further lower towards the 1.2551 level, its Dec 04’08 low with a loss of there opening up downside risk towards its YTD low at 1.2330.Momentum indicators on the weekly time frame are supportive of this though those of the daily are oversold. The daily indicators condition is the only risk at this stage that may trigger corrective upside as evidenced in its printing of a high wave candle on Wednesday. If this materializes, we could see nearer term upside recovery  targeting the 1.3298/1.3313 zone, representing its Jan 06’09 low/Oct 30’08 high. Further out, the 1.3531 level, its Oct 20’08 high will be aimed at before the 1.3785 level, its Oct 09’08 high. On the whole, with the 1.3298 level taken out and a low of 1.3094 printed Wednesday, EUR now looks to head further lower towards its YTD low at 1.2330 in the days and weeks ahead.

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