HIGHLIGHTS:

GBPUSD: Prints Higher Rejection Candle - An intra day loss of momentum at the 1.6124 level pushed the pair to a marginal close printing a rejection at the end of the session on Wednesday.

EURUSD: Gives Back Upside Gains - EUR continues to face downside pressure nearer term following a reversal of its Wednesday gains in early trading today.


EURUSD

EURUSD

EURUSD: Recovery Strength Eyes The 1.4844 Level.

EURUSD - Having halted its nearer term corrective pullbacks at the1.4479 level and triggered an upside strength, EUR was seen building on that gain today pushing through its Sept 30’09 high at 1.4672. With this development price action is now expected to develop towards its YTD high at 1.4844 with a decisive penetration of there allowing further upside gains towards 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. Its daily studies are supportive of this view. However, any price stall at the current level will put its nearby support at 1.4672 under pressure where a break low will expose its Oct 02’09 low at 1.4479. A cap is expected at the latter level. The next support lies at its MT rising trendlinecurrent at 1.4347. We retain our medium term bullish view on the pair with a break and hold above the 1.4844 level triggering that trend.


AUDUSD

AUDUSD

AUDUSD: Breaks The 0.8857 level, Resumes Its Medium Term Uptrend.

AUDUSD - The pair has broken the 0.8857 level intra and has resumed its medium term uptrend with the next upside target standing at 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. Its daily RSI continues to trend higher suggesting further upside gains. Conversely, supports are located at the 0.8857 level with an erosion of there turning the pair further lower towards the 0.8754 level, its intra day low and the 0.8567 level, its Oct 02’09 low. Below the latter will put the pair on the part to the 0.8584 level, marking its Sept 28’09 low.
On the whole, having broken and triggered the resumption of its medium term uptrend, risk remains to the upside with the only threat being a failure of the mentioned break.