HIGHLIGHTS:

EURUSD: Trades Above The 1.4844 level - The pair remains hesitant giving back its intra day losses to test a high of 1.4917 before closing marginally higher at 1.4876 on Thursday..

GBPUSD: Breaks And Trades Above The 1.6692/1.6740 Levels - GBP has broken and held above our highlighted (weekly analysis) resistances level s at the 1.6692 and the 1.6740 levels leaving further upside towards its YTD high at 1.7041.


EURUSD

EURUSD

EURUSD: Trades Above The 1.4844 level.

EURUSD - The pair remains hesitant giving back its intra day losses to test a high of 1.4917 before closing marginally higher at 1.4876 on Thursday. Though currently trading above its key resistance at the 1.4844 level, a firm hold above there is required to signal further upside strength. Potential for additional higher prices exist towards its Oct 27’09 high at 1.4926 with a loss of that level extending upside gains towards the 1.5000 level, its psycho level and then its YTD high at 1.5062. Beyond there will trigger the resumption of its medium term uptrend now on hold.
Its daily stochremains supportive of this view. On a failure above the 1.4844 level, downside pressure should shape towards the 1.4625 level ahead of its MT rising trendlinecurrently at 1.4593 where we expect a cap. However, if that fails to materialize, price acceleration could develop towards the 1.4479 level, its Oct 02’09 low. On the whole, EUR must maintain above the 1.4844 level to reduce its corrective downside pressure and bring gains towards the 1.4926 and then 1.5000 levels.


GBPUSD

GBPUSD

GBPUSD: Breaks And Trades Above The 1.6692/1.6740 Levels

GBPUSD - GBP has broken and held above our highlighted (weekly analysis) resistances level s at the 1.6692 and the 1.6740 levels leaving further upside towards its YTD high at 1.7041. With a strong upside momentum now seen, the pair now looks to resume its medium term uptrend on hold since early Aug 05’09 and an eventual break of the 1.7041 level will herald that with further push higher expected towards its .50 Ret (2.1160-1.3501) decline at 1.7314 ahead of the 1.7630 level, its Oct 12’08 high(medium term outlook).This view is clearly supported by its daily RSI and stochasticswhich are bullish and pointing higher suggesting additional strength. In case of a pullback, the 1.6740 and the 1.6692 levels just eroded are expected to reverse roles and provide support thereby turning the pair higher again. Other supports below there if seen are positioned at its Oct 29’09 high at 1.6602, the 1.6464 level, its Nov 05’09 low and the 1.6260 level, its Nov 03’09 low. Overall, GBP has its eyes on further upside prices having cleared its key overhead resistance levels at the 1.6692 and 1.6740 levels.