HIGHLIGHTS:

GBPUSD: 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.


GBPUSD

GBPUSD

GBPUSD: Higher Recovery Eyes The 1.6132 Level.

GBPUSD - Having recovered off the 1.5768 level, its Sept 28’09 high and followed through higher on Tuesday to close higher at 1.5968, further price extension was seen in early trading today driving GBP through its nearby resistance at the 1.6063 level, its daily 200 ema. With the current strength, the pair could be eyeing a retest of its Sept 21’09 high at 1.6132 where an invalidation will put it in position to even accelerate higher aiming at the 1.6463 level, its Sept 23’09 high where a cap could be seen. Its daily momentum indicators are bullish and pointing higher suggesting further strength. On the other hand, pullbacks should initially aim at its Tuesday high at 1.5988 with a break and close below there putting pressure on the 1.5768. Below there with will put the pair on the path to further declines towards the 1.5500 level, its psycho level and then its .50 Ret( 1.3652-1.7041 rally) at 1.5350. On the whole, GBP continues to build on its recovery strength following its recent run to the downside off the 1.7041 level.


AUDUSD

AUDUSD

AUDUSD: Activates Medium Term Uptrend.

AUDUSD - As indicated in our Tuesday analysis, AUDUSD’s recovery off the 0.8584 level has yielded the resumption of its medium term uptrend following its break through its YTD high at 0.8787 today. On a hold onto those gains above the said level, additional higher prices are expected towards its Aug 10’08 high at 0.8950 with a clean penetration of there allowing for further upside targeting the 0.9000 level, its big psycho level. This level on initial test should pose a threat to the pair. AUDUSD is supported by its bullish studies which are pointing higher. On the downside, immediate support lies at the 0.8810 level, its Aug 17’08 high followed by the 0.8787 level, its eroded YTD high with an acceleration through there targeting the 0.8584 level, marling its Sept 28’09 low. On the whole, with the resumption of the pair’s medium term uptrend seen, further upside gains are expected in the days ahead.