EURUSD:Back Above The 1.3330 Level With Sight On The 1.3738 Region-With EUR reversing its previous week gains and breaking back below the 1.3330 level, its Jan 27’09 high/former range top into its broader consolidation range(between 1.3330 & 1.2330 levels)again, risk has increased for further declines towards its key support at the 1.3113 level, its Mar 30’09 low.

GBPUSD: Still Biased To The Upside-Although GBP failed to follow through to the upside on its previous week gains turning back lower to close the week lower at 1.4673, while the pair continues to maintain above the 1.4662 level, its Feb 23’09 high or even the 1.4111 level, its Mar 30’09 high, it is biased to the upside.

EURUSD-With EUR reversing its previous week gains and breaking back below the 1.3330 level, its Jan 27’09 high/former range top into its broader consolidation range(between 1.3330 & 1.2330 levels)again, risk has increased for further declines towards its key support at the 1.3113 level, its Mar 30’09 low. We envisage a clearance of there driving the pair further lower towards the 1.3090/93 level, its Feb 09’09 high/April 09’09 low. We should see a cap at the latter level if traded due to its significance as strong support level which also habours its .50 Ret(1.2456-1.3738 rally) at 1.3097.However,if that level is cleanly violated, the 1.2992/1.3000 area, its Feb 23’09 high/psycho level will be targeted ahead of the 1.2456 level, its Mar 04’09 high.Weekly RSI remains bearish as well, pointing towards further weakness. To the topside, resistance initially lies at the 1.3330 level, its Jan 27’09 high/former range top with a cut through that level allowing the pair to push towards the 1.3583 level, its April 06’09 high and subsequently its Mar 19’09 high at 1.3738.This level serves as the trigger for the resumption of its short term uptrend initiated at the 1.2456 level towards the 1.3964 level, representing Jan 05’09 high with a breach of there creating scope for further upside towards its Dec 29’08 high at 1.4363.On the whole, with price action and momentum indicators pointing lower, EUR should target additional lower levels prices.

GBPUSD-Although GBP failed to follow through to the upside on its previous week gains turning back lower to close the week lower at 1.4673, while the pair continues to maintain above the 1.4662 level, its Feb 23’09 high or even the 1.4111 level, its Mar 30’09 high, it is biased to the upside. This view is also supported by its daily rising channel. In such a case, its Jan 16’09/Feb 09’09 highs at 1.4981/86 will come in as the next upside target with a loss of there setting the stage for a run at the 1.5374 level, its Jan 08’09 high. The weekly studies are heading higher supporting this view. On the downside, invalidating the 1.4662 level will open up further downside risk towards the 1.4305 level, its Mar 06’09 high and then the 1.4111 level, its Mar 30’09 high. Though the pair is biased to the upside in the nearer term, its overall medium to longer term downside remains alive but on hold. All in all, with the 1.4662 level providing support and its daily rising channel still valid, GBP continues to maintain its nearer term upside outlook.