EURUSD: Break Through The 1.2766/06 Area Remains On Hold -As a third attempt to break and close below the key support at its Jan 23’09/Feb 02’09 lows at 1.2706/66 failed the past week, risk of higher prices while the mentioned levels are unbroken can remains on the horizon

EURJPY: Range Trading Environment Continues To Dominate - A clear directional move continues to elude the cross as it remains trapped within its trading range environment with 131.06 and 112.09 seen as range top and low …

EURUSD- As a third attempt to break and close below the key support at its Jan 23’09/Feb 02’09 lows at 1.2706/66 failed the past week, risk of higher prices while the mentioned levels are unbroken can remains on the horizon. Although a valid weekly lower close was printed the past week, a clearance of the 1.2706/66 zone must occur to pave the way for a decline towards its Dec 04’08 at 1.2551 on the way to its 2008 swing low at 1.2330.We retain our view for the eventual loss of the latter triggering the resumption of its medium term downtrend now on hold. The weekly stochastics is bearish and trending lower suggestive of additional downside pressure.Conversely,if the bull’s hold on to the 1.2706/66 area culminates into an upmove, we could see its Feb 04’09/Nov 25’08 highs at 1.3071/81 being targeted ahead of the 1.3298/1.3313 zone, its Jan 06’09 low/Oct 30’08 high where a cap is expected to turn the pair lower. This zone is lined up with a band of resistance levels which when broken will put the pair in position to head further higher towards its Jan 12’09 high at 1.3477.On the whole, hesitation ahead of the 1.2766/06 level portends corrective upmove but the pair still maintains its overall bearish structure.

GBPUSD- A clear directional move continues to elude the cross as it remains trapped within its trading range environment with 131.06 and 112.09 seen as range top and low. Although price action continues to move back and forth within the mentioned range, until a break through either of the range occurs any meaningful directional moves are not likely to seen in the short term. Resistance levels are situated at the 119.58 level, its Jan 28’09 high with a turn above there driving the cross towards its Jan 19’09 high at 122.17 and then the 127.66 level, its Jan 08’09 high. The next two upside objectives are located at the 129.72 level, representing its Dec 29’09 high and finally its range top at 131.06.This view is supported by its weekly stochastics which has now turn higher. On the other hand, downside targets comes in at the 117.61 level, its Dec 12’08 initially followed by its Dec 05’08 low at 115.88 where a loss should bring declines towards its YTD low at 112.On the while,EURJPY remains unsure of where to go in the short term but still retains its overall bearishness in the medium term.