HIGHLIGHTS:

EURUSD: Backs Off The 1.3298/1.3313 Zone- Although positive closes were seen on Tuesday and Wednesday following the pair’s break out above its declining channel top, its inability to hold above the 1.3298/1.3313 zone, its Jan 06’09 low/Oct 30’08 high saw it trading lower in early morning trading today...

GBPUSD: Recovery Off The 1.3504 Level Stalls -The pair maintained a third-day of upside gains on Wednesday trading to as high as 1.4375 before closing the session at 1.4228.…

EURUSD: Backs Off The 1.3298/1.3313 Zone

EURUSD: Although positive closes were seen on Tuesday and Wednesday following the pair’s break out above its declining channel top, its inability to hold above the 1.3298/1.3313 zone, its Jan 06’09 low/Oct 30’08 high saw it trading lower in early morning trading today. The mentioned weakness should now target its Nov 25’08 high at 1.3081 and its Jan 15’09 low at 1.3026 followed by the 1.2766 level, its Jan 23’09 low. Further downside will aim at the 1.2330 level, its 2008 low.However,if the pair reverses its current intra day weakness, a retarget of the 1.3298/1.3313 zone will be attempted again. The next upside above there if seen resides at its Jan 19’09 high at 1.3386 followed by the 1.3531 level, its Oct 20’08 high and the 1.3799 level, its Jan 08’09.On the whole, while the present weakness has put a stop to nearer term upside gains, a break and close below the 1.2766 level must occur to wipe out its entire recovery off the said level and put pressure on the downside towards the 1.2330.

Support      Comments

1.3081       Nov 25’08 high

1.2848       Dec 04’08 high

1.2766       Jan 23’09 low

Resistance        Comments

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

1.3386               Jan 19’09 high

1.3531               Oct 20’08 high