HIGHLIGHTS:

EURUSD: Above The 1.5062 Level To Trigger MT Trend Resumption - EUR continues to sustain its upside gains started from the 1.4625 level though having a tough time breaking and holding firmly above its,..

GBPUSD: Pressured To The Downside - The pair could be on its way to a third-day of weakness as its loss of upside momentum at the 1.6842 level, its Nov 09’09 high continues …


EURUSD

EURUSD

EURUSD: Above The 1.5062 Level To Trigger MT Trend Resumption.

EURUSD - EUR continues to sustain its upside gains started from the 1.4625 level though having a tough time breaking and holding firmly above its key overhead resistance at the 1.5000 level. Although attempt above the level failed on Tuesday and Wednesday, as long as the pair continues to hold above its strong support at the 1.4844 level and its LT rising trendline, an eventual retarget and break of the 1.5000/62 levels is likely to be seen. Beyond there will open further upside risk towards the 1.5082 level, its Aug 10’08 high and next its 1.5283 level, its May 04’08 low. Its daily studies are bullish and pointing higher supporting this view. Supports are located at the 1.4926 level and the 1.4844 level with a clean break of the latter bringing further downside losses towards the 1.4660 level where its LT rising trendlineis located. A cap is expected there if tested but if it breaks, the 1.4625 level, its Nov 03’09 low will be targeted. The risk to our analysis will be a loss of the 1.4844 level followed with a break below its LT rising trendline. On the whole, having held firmly above the 1.4844 level, further upside is expected nearer term.


GBPUSD

GBPUSD

GBPUSD: Pressured To The Downside

GBPUSD - The pair could be on its way to a third-day of weakness as its loss of upside momentum at the 1.6842 level, its Nov 09’09 high continues to put it under pressure. It was seen in early trading today heading towards ST rising trendlinecurrently at 1.6466 where a temporary halt is envisaged but if that snaps, lower prices could develop towards its strong supports at the 1.6249/60 area, its Oct 26’09/Nov 03’09 lows. We believe that level should provide a wedge and turn the pair back up. This zone is very crucial in the pair’s recovery off the 1.5706 level, its Nov 13’09 low as it must hold to preserve that recovery but if a decisive break through there occurs, we expect GBP to weaken further towards its Oct 30’09 high at 1.6124 level and then the 1.5706 level. Its daily studies are both bearish and pointing lower supporting this view. To the topside, the pair must break back above the 1.6740 and the 1.6842 levels to reverse its current downside threats and bring the 1.7041 level where its YTD high is standing with a penetration of there triggering the resumption of its medium term uptrend now on hold towards its .50 Ret (2.1160-1.3501)at 1.7314. On the whole, GBP remains pressured having collapsed off the 1.6842 level.