HIGHLIGHTS:

EURUSD: Maintains Below The 1.3298 level - A hammer candle (bottom reversal signal)was formed Thursday after EUR gave back part of its intra day losses to close at 1.3160...

GBPUSD: Nearer Term Corrective Recovery Builds Up - GBP has embarked on a corrective recover y closing higher for a second-day in a row after touching a low of 1.4471 ON Jan 13’09…

EURUSD: Maintains Below The 1.3298 level.

EURUSD: A hammer candle (bottom reversal signal)was formed Thursday after EUR gave back part of its intra day losses to close at 1.3160.As long as the pair continues to trade below the 1.3298/1.3313 zone, representing its Jan 06’09 low/Oct 30’08 high or even within its falling channel, odds are for the continuation of its decline off the 1.4719 level. Downside targets are located at its Dec 04’08 low at 1.3081 with a turn below there putting EUR in position to move towards the 1.2551 level, its Dec 04’08 low and finally its YTD low at 1.2330.Conversely, the 1.3298/1.3313 zone comes in as the initial resistance accompanied by the 1.3531 level, its Oct 20’08 high with a break through there extending gains higher towards the 1.3785 level, its Oct  09’08 high. On the whole, with the pair sustaining its break below the 1.3298 level and trading within its established falling channel, further downside gains are envisaged.

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