EURUSD: Declines Through The 1.2848 Level Remains On The Cards- As EUR maintained its decline off the 1.4719 level the past week cutting through its Nov 25’08 high at 1.3081 and testing a low of 1.2766 on Friday, a convincing break and hold below its key support at the 1.2848 level, its Dec 04’08 high is now required to open up further downside declines …

GBPUSD: Loss Of The 1.4045 Level Threatens The 1.3682/00 Support Area - With the loss of the 1.4352 level, its YTD low and its Jan’2002 low at 1.4045 occurring the past week,GBP is now left targeting  the 1.3682 level, its Jun’2001 low and its 1986 low at 1.3600…

Declines Through The 1.2848 Level Remains On The Cards

EURUSD- As EUR maintained its decline off the 1.4719 level the past week cutting through its Nov 25’08 high at 1.3081 and testing a low of 1.2766 on Friday, a convincing break and hold below its key support at the 1.2848 level, its Dec 04’08 high is now required to open up further downside declines. In such a case, its Dec 04’08 high at 1.2551 will be aimed at ahead of its YTD low at 1.2330.Its weekly studies are trending lower supporting this scenario. Our view remains for an eventual break below the latter level triggering downside losses towards the 1.1860 level, marking its Mar’2006 low. The risks to this analysis is the rejection candle printed on Friday after testing an intraday low of 1.2766 and the oversold condition now seen on the daily time frame. If this were to activate upside gains, its Nov 25’08 high at 1.3081 will be targeted initially with a break through  there extending price gains towards its Jan 06’09 low/Oct 30’08 high at 1.3313/1.3298 where a cap is expected to turn the pair lower again. On the whole, with EUR’s downside momentum started at the 1.4719 level remaining intact, additional downside pressure is expected

Directional Bias:

Nearer Term –Bearish

Short Term –Bearish

Medium Term –Bearish

Performance in %:

Past Week: -2.28%

Past Month: +10.01%

Past Quarter: -1.05%

Year To Date: -7.06%

Weekly Range:

High -1.3386

Low -1.2766