HIGHLIGHTS:

EURUSD: Looks To Target The 1.3827 Level -With the pair still maintaining its gains triggered off the 1.4177 level, its Jun 11'09 and having closed lower on Tuesday, lower level prices continue to build up towards the 1.3826 level, its Jun 22’09 low.

GBPUSD: Turns Off Ahead Of TrendlineSupport -The pair’s declines started at the 1.6742 level, its YTD high saw a respite Thursday halting and rallying sharply higher to close yesterday at 1.6295.


EURUSD

EURUSD

EURUSD: Looks To Target The 1.3827 Level.

EURUSD - With the pair still maintaining its gains triggered off the 1.4177 level, its Jun 11'09 and having closed lower on Tuesday, lower level prices continue to build up towards the 1.3826 level, its Jun 22’09 low. We maintain our bearish nearer term downside view while the pair trades below the 1.4188 level and envisage a break through the 1.3827 level leading to further downside towards the 1.3738 level, its Mar 19’09 high where a cap is expected. However, if a break and close below there materializes focus will turn to the 1.3618 level, its weekly 200 ema. Its daily stochasticscontinue to point lower supporting this view. To the upside, its psycho level resting at 1.4000 will be aimed at followed by the 1.4177 level, its Jun 11'09 where a clearance will open up more upside risk towards the its YTD high at 1.4339.Above there will resume its medium term uptrend towards the 1.4719 level, its Dec 18’08 high and possibly higher targeting the 1.4867 level, its Sept 22’08 high. On the whole, having rejected the 1.4177 level on several occasions, EUR remains vulnerable to downside nearer term.


GBPUSD

GBPUSD

GBPUSD: Turns Off Ahead Of TrendlineSupport.

GBPUSD: The pair’s declines started at the 1.6742 level, its YTD high saw a respite Thursday halting and rallying sharply higher to close yesterday at 1.6295. With a clearance of key levels of resistance seen, GBP should target more upside towards its July 03’09 high at 1.6427 with a cut through there setting the pair up for further upside towards its YTD high at 1.6742. Beyond there will resume its medium term uptrend now on hold towards the 1.7000 level, its psycho level and possibly higher. The daily RSI is positive and pushing higher supporting this view. On the other hand, initial support resides at the 1.6000 level with a decline below there allowing the pair to weaken further towards its rising trendlinesupport at 1.5854. Other supports are located at the 1.5798 level, its Jun 08’09 low and then the 1.5374 level, its Jan 08’09 high. All in all, while the pair still retains its medium term upside bias, a close above the 1.6742 level is needed to resume that trend.