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: Vulnerable Towards The 1.6000 Level - With the pair now seen trading below its range bottom at 1.6184 following its Tuesday break lower, potential for further downside weakness remains though a recovery was seen in early trading today.


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: Vulnerable Towards The 1.6000 Level.

GBPUSD - With the pair now seen trading below its range bottom at 1.6184 following its Tuesday break lower, potential for further downside weakness remains though a recovery was seen in early trading today. Since rejecting higher level prices the past week after printing shooting star candles on the daily and weekly charts, its corrective pullbacks coming on the back of medium term upmoveha been reinforced. Support lies at the 1.6000 level, its psycho level with a cut through there if seen targeting the 1.5879 level where its MT rising trendlineis located. Below there will highlight the 1.5724 level, its Dec 17’08 high. We expect the latter level to revert to support and turn the pair higher again but if that fails, a run at the 1.5374 level, its Jan 08’09 high is likely to be seen. However, in order for our nearer term view to be invalidated, we need to see a recapture of its last week high at the 1.6742 level. Beyond there will resume its medium term uptrend now on hold towards the 1.7000 level, its psycho level and possibly higher. All in all, while the pair still retains its medium term upside, its current loss of the 1.6184 level has turn focus to the downside nearer term.