HIGHLIGHTS:

EURUSD: Nearer Term Weakness Set To Continue – As a loss of upside momentum at the 1.4844 level(YTD high) continues to push the pair lower closing at 1.4620 on Monday and following through lower in early.

AUDUSD: Looking To Resume Its Medium Term Uptrend  – Having corrected for two days from its recent high at 0.8787, AUDUSD was seen closing higher on Monday suggesting that it has ended the said declines.


EURUSD

EURUSD

EURUSD: Nearer Term Weakness Set To Continue.

EURUSD - As a loss of upside momentum at the 1.4844 level(YTD high) continues to push the pair lower closing at 1.4620 on Monday and following through lower in early trading today, its nearby support standing at the 1.4514 level (Sept 14’09 low) is now being targeted. If the current weakness drives the pair through that level, we could witness further downside losses towards the 1.4446 level, its Aug 05’09 high where a cap is expected. Further down, a solid support should be provided by its MT rising trendlinecurrently at 1.4280 if the latter level is violated. Its daily studies are bearish and pointing lower suggesting further weakness. On the other hand, in order for its medium term uptrend to be triggered and its present corrective weakness halted, a return above the 1.4844 level must occur putting the next upside at the 1.4875 level, representing its Sept 21’09 high ahead of the its psycho level at 1.5000 and then the 1.5082 level, its Aug 10’08 high.On the whole, though biased to the upside medium term, EUR is now being challenged by corrective weakness with eyes on the 1.4514 level.


AUDUSD

AUDUSD

AUDUSD: Looking To Resume Its Medium Term Uptrend.

AUDUSD - Having corrected for two days from its recent high at 0.8787, AUDUSD was seen closing higher on Monday suggesting that it has ended the said declines and now preparing to resume its MT uptrend. A break and hold above the 0.8787 level will have to materialize to resume that uptrend and bring further gains towards the 0.8810 level, its Aug 17’08 high with a violation of there targeting its Aug 10’08 high at 0.8950. Its daily studies have turned higher supporting this view. On the downside, the 0.8594 level, its Sept 28’09 low is now seen as the immediate support with a cut through there paving the way for a run at its Sept 14’09 low at 0.8543 where a breach will open the door for further downside towards the 0.8476 level, its Aug 08’09 high.
On the whole, with corrective declines now halted, AUDUSD now focuses on the resumption of its medium term uptrend triggered off the 0.6246 level.