In This Issue:

EURUSD: Clearance Of 200 EmasExposes The 1.3738 Level -A third-week of upside gains has not only taken the pair out of its daily declining channel but has broken above its daily and weekly 200 emasto close the week higher at 1.3634.

GBPUSD: Recovery Resumption Turns Focus On The 1.5373 And Beyond-Having broken and closed above its strong resistance at the 1.5068 level, representing its April 16’09 high to close higher for a second consecutive week, further upside gains are now envisaged towards the 1.5374 level, its Jan 08’09 high.


EURUSD

EURUSD

Clearance Of 200 EmasExposes The 1.3738 Level.

EURUSD-A third-week of upside gains has not only taken the pair out of its daily declining channel but has broken above its daily and weekly 200 emasto close the week higher at 1.3634.
With this achieved ,risk has turned to the upside with its strong resistance residing at its Mar 19’09 high at 1.3738 coming in as the next upside target where a break and hold above there will activate its short term recovery initiated at the 1.2456 level, its Mar 04’09 high towards its Jan 05’09 high at 1.3964.Beyond the latter will leave the pair aiming at the 1.4363 level, its Dec 29’08 high. Its weekly momentum indicators are bullish and trending higher suggesting further strength. On the downside, its invalidated 200 emacurrently at 1.3452 is seen as the immediate support with a turn below there leaving the pair with further declines towards the 1.3385 level, its April 30’09 high ahead of the 1.3213 level, its May 04’09 low. We maintain that while the mentioned rally is sustained further weakness is likely to be seen. On the whole, with a fresh leg of attack initiated, EUR now looks to build on those gains with the next target situated at the 1.3738 level.


GBPUSD

GBPUSD

Recovery Resumption Turns Focus On The 1.5373 And Beyond.

GBPUSD-Having broken and closed above its strong resistance at the 1.5068 level, representing its April 16’09 high to close higher for a second consecutive week, further upside gains are now envisaged towards the 1.5374 level, its Jan 08’09 high. This view remains supported by its daily rising trendline drawn off the 1.3566 level and its bullish weekly momentum indicators. Above the 1.5373 level will open the way for further upside towards the 1.5724 level, its Dec 17’09 high and possibly higher. Although our bias remains to the upside, on any pullback ,the pair should target the 1.5068 level with the invalidation of there putting GBP on the path to further declines towards the 1.4836 level, its May 04 09 low and then its April 27’09 low at 1.4517 level. Despite this downside scenario, we expect the 1.5068 to initially provide support on any pullback thereby turning the pair higher again.
All in all, with the continuation of its recovery off the 1.3655 level triggered, GBP should accelerate further.