HIGHLIGHTS:

EURGBP: Breaking To New Lows And Targeting More Downside - The cross closed lower Wednesday and was seen following through lower today breaking to new lows in early trading today.

EURUSD: Above The 1.3738 Level Leaves MT Outlook Higher- Although intra day gains were reversed to put the pair in a negative territory on Wednesday, as long as EUR continues to hold above its strong support located at the 1.3738 level, marking its Mar 19’09 high, risk remains to the upside in the medium term.


EURGBP

EURGBP

EURGBP: Breaking To New Lows And Targeting More Downside.

EURGBP: The cross closed lower Wednesday and was seen following through lower today breaking to new lows in early trading today. With EURGBP now testing a low of 0.8510(as at the time of this writing) and holding below its key support levels, further downside are expected towards the 0.8450 level, its psycho level, and then the 0.8400 level. Its daily studies are negative and pointing lower suggesting further weakness. On any recovery higher from its current price levels, its invalidated support residing at the 0.8575 level will be targeted ahead of the 0.8638 level, its Feb 10’09 low. We expect these key support turned resistance to reverse roles and turn the pair back down again. On the whole, with a resumption of its weakness started at the 0.9801 level activated, risk remains to the downside.


EURUSD

EURUSD

EURUSD: Above The 1.3738 Level Leaves MT Outlook Higher.

EURUSD: Although intra day gains were reversed to put the pair in a negative territory on Wednesday, as long as EUR continues to hold above its strong support located at the 1.3738 level, marking its Mar 19’09 high, risk remains to the upside in the medium term. Immediate resistance lies at the 1.4000 level with a turn above there exposing the 1.4267 level, its Jun 05’09 high. An extension through the latter will call for further declines towards its YTD high at 1.4338.A climb back above there will trigger the resumption of its medium term uptrend now on hold targeting the 1.4718 level, its Dec 18’08 high. Support starts at the 1.3805 level, its Jun’09 low and extends towards its the 1.3738 level, marking its Mar 19’09 high where a cap is expect and subsequently turning the pair higher again. However, if it moves below that level, EUR has a good chance of testing its daily 200 emaat 1.3548 level. Its daily stochastics which is now pointing lower remains supportive of this view. On the whole, though currently correcting, EUR still retains it medium term uptrend bias and looks to resume that trend on ending the mentioned correction.