EURUSD: Strength Off The 1.2706 Level Halts Downside Weakness - An attempt to maintain its declines off the 1.4719 was rebuffed last week, turning the pair higher to close the week higher at 1.2925,its first since tumbling off the mentioned high in Dec’08…

GBPUSD: Consecutive Weekly Gains Expose The 1.4981 Level - Following a three-day of price hesitation from Monday to Wednesday,GBP broke higher on Thursday and Friday to close the week higher at 1.4807 and maintain its corrective recovery started at the 1.3504 level, its YTD low …

Strength Off The 1.2706 Level Halts Downside Weakness.

EURUSD- An attempt to maintain its declines off the 1.4719 was rebuffed last week, turning the pair higher to close the week higher at 1.2925,its first since tumbling off the mentioned high in Dec’08.This development now leaves the pair aiming at its nearby resistance(falling channel top, daily chart) currently at 1.2975 with an invalidation of there setting the stage for a move towards its Feb 04’09/Nov 25’08 highs at 1.3071/81.The bigger and stronger support zone lies at the 1.3298/1.3313 zone, its Jan 06’09 low/Oct 30’08 high. We expect this zone supported by another cluster resistance zone at 1.2327/30 to turn the pair back down and resume its declines initiated at 1.4719.Its medium term swing low printed in Oct’08 at 1.2330 remains our target after ending its present back and filling price activities. On the downside, failing to follow through on its Friday’s strength would mean a turn back towards its Feb 02’09 low at 1.2706 with a clean price extension through there targeting its Dec 04’08 at 1.2551 enroute to its 2008 swing low at 1.2330.Recapturing this level and eventually taking it out will resume the pair’s medium term weakness and call for an attack on the its Feb’06 low at 1.1827.Its weekly studies are supportive of this view. On the whole, EUR continues to retain its short and medium term bearishness suggesting its current upmove remains corrective.

Directional Bias:

Nearer Term –Mixed

Short Term –Bearish Medium

Term –Bearish

Performance in %:

Past Week: +0.94%

Past Month: -8.35%

Past Quarter: -1.05%

Year To Date: -7.49%

Weekly Range:

High -1.3071

Low -1.2706