HIGHLIGHTS:

EURUSD: Price Hesitation Continues To Hold EUR Off The 1.2514/1.2330 Levels- Despite its tumble off the 1.2992 level, its Monday high, a failure to follow through lower Tuesday saw the pair reversing all of those losses and opening the door for a push towards the 1.2992 level(Feb 23’09 high)...

GBPUSD: Targeting Higher Prices - While marginal gains continue(Tuesday) to be seen after resisting and holding above the 1.4137 level, its Feb 12’09 low ,we envisage a move towards its Feb 23’09 minor resistance located at 1.4662…

EURUSD: Despite its tumble off the 1.2992 level, its Monday high, a failure to follow through lower Tuesday saw the pair reversing all of those losses and opening the door for a push towards the 1.2992 level(Feb 23’09 high).That resistance zone is within the vicinity of its Feb 04’09/Nov 25’08 high at 1.3071/81 and if a loss of there is triggered, we could see further upmove towards its Jan 27/28’09 highs at 1.3327/30,another strong resistance level. This levels will be in danger of being invalidated if the pair continues to lose momentum ahead of the 1.2514 level, its Feb 18’09 low and its major swing low at 1.2330 printed in Oct’08.Its daily stochastics remains supportive of this view.However,we still retain our bearish outlook for the pair to return to the 1.2330 level which is premised on its overall medium term downtrend. A break of there will resume EUR’s medium term downtrend on hold since late Oct’08 towards the 1.1860 level, its Mar’06 low and then its Nov’05 at 1.1640.Having said that, our short term bull trigger lies at the 1.3327/30 level while the medium term bear trigger is situated at the 1.2330 level. On the whole, until any of this key levels are decisively broken, EUR seems to be trapped in a range.

GBPUSD: While marginal gains continue(Tuesday) to be seen after resisting and holding above the 1.4137 level, its Feb 12’09 low ,we envisage a move towards its Feb 23’09 minor resistance located at 1.4662.On a clearance of that level, its Jan 16’09/Feb 09’09 highs at 1.4981/86 will be put under pressure with a break through there confirming the resumption of its corrective recovery off the 1.3504 towards the 1.5374 level, marking its Jan 08’09 high. The pair’s daily stochastics is positive and pointing higher suggesting further strength. On the other hand, the risk to this upside view will be a clean penetration and negation of the 1.4362 and 1.4137 levels highlighting the its Jan’2002 low at 1.4045 with a turn below there setting the stage for a move towards the 1.3682 level, its Jun’2001 low and then its YTD low at 1.3504.Regradless of its current upmove which is corrective, GBP retains its medium and long term bearishness triggered off the 2.1161 level in Nov’07.All in all,GBP looks to head back down on ending the mentioned corrective recovery.