HIGHLIGHTS:

EURUSD: Turns Off The 1.2848 Level, May Correct Higher- With an unsustained hold on the 1.2848 level after declining to as low as 1.2825 on Wednesday seen pushing the pair back higher to close higher at the 1.3001,corrective recovery may be unfolding...

EURGBP: Continued Upside Incursions To Target The 0.9434 Level - While a fourth day of upside gains was seen Wednesday,EURGBP now requires a break and close above its .618 Ret(0.9803-0.8844 declines) at 0.9434 to continue its upside incursion started at the 8844 level, its Jan 16’09 low…

EURUSD: Turns Off The 1.2848 Level, May Correct Higher

EURUSD: With an unsustained hold on the 1.2848 level after declining to as low as 1.2825 on Wednesday seen pushing the pair back higher to close higher at the 1.3001,corrective recovery may be unfolding. If that materializes, further recovery higher could target its Jan 15’09 low at 1.3026 and its Nov 25’08 high at 1.3081 with a loss of the latter setting the stage for a move towards the 1.3298/1.3313 zone, its Jan 06’09 low/Oct 30’08 high. This zone also habours its falling channel top making that region very significant. We believe the pair should trade within its falling channel with the mentioned resistance area providing some reinforcement. Support are situated at the 1.2848 & the 1.2551 levels, its Dec 04’08 high and Dec 04’08 low with a clearance of there turning attention to the its YTD low at the 1.2330 level. On the whole, while corrective upmove may be building up, its broader bias remains to the downside.

Support      Comments

1.2848        Dec 04’08 high

1.2551        Dec 04’08 low

1.2330       YTD low

Resistance        Comments

1.3081               Nov 25’08 high

1.3298/1.3313   Jan 06’09 low/Oct 30’08 high

1.3531               Oct 20’08 high