EURUSD: Unrelenting Downside Pressure Turns Risk Towards The 1.2330 Level- After a fifth week of downside losses following the pair’s collapse at the 1.4719 level, its Dec 18’08 high, vulnerability of further downside losses remains…

GBPUSD: Climb Back Above The 1.4352 Level Highlights The 1.4982 Level- As GBP continues to build upon its recovery started at the 1.3504 level, its YTD low, further upside gains are now envisaged towards the 1.4981 level, its Jan 16’09 high …

Unrelenting Downside Pressure Turns Risk Towards The 1.2330 Level

EURUSD- After a fifth week of downside losses following the pair’s collapse at the 1.4719 level, its Dec 18’08 high, vulnerability of further downside losses remains. This should retarget the bigger support at the 1.2330 level, its 2008 low though its Jan 23’09 low at 1.2766 and its Dec 04’08 at 1.2551 will have to be overcome for the former to play out. EUR’s downside case is clearly supported by its three-day sell off from 1.3327 to as low as 1.2778 on Friday as well as its bearish daily and weekly momentum indicators which are now trending lower. If our outlook for a break of the 1.2330 level plays out, resumption of its medium term decline on hold since Oct’08 will be activated towards its Feb’06 low at 1.1827.On the upside, its Jan 15’09 low at 1.3026 will come in as resistance at first followed by its Nov 25’08 high at 1.3081 ahead of a stronger chart level located at the 1.3298/1.3313 zone, its Jan 06’09 low/Oct 30’08 high. We see the pair backing off this level if traded and turning back lower gain in alignment with its bearish medium term outlook. On the whole, having maintained its bearish price action since tumbling off the 1.4719 level, EUR remains susceptible to further downside losses.

Directional Bias:

Nearer Term –Bearish

Short Term –Bearish

Medium Term –Bearish

Performance in %:

Past Week: -1.39%

Past Month: -8.35%

Past Quarter: -1.05%

Year To Date: -8.35%

Weekly Range:

High -1.3330

Low -1.2778