In This Issue:

EURUSD: Maintains A Third Consecutive Week Of Higher Closes - EUR maintained its bullish tone for a third consecutive week building on its strength activated at the 1.3831 level, its July 08’09 low and opening up upside risk towards its YTD high at 1.4339.

GBPUSD: Aiming At The 1.6742 Level & Beyond - With continued strength seeing the pair closing higher for a third week in a row since turning off higher at the 1.6031 level in early July’09, further upside gains are expected towards its YTD high 1.6742.


EURUSD

EURUSD

EURUSD: Maintains A Third Consecutive Week Of Higher Closes

EURUSD - EUR maintained its bullish tone for a third consecutive week building on its strength activated at the 1.3831 level, its July 08’09 low and opening up upside risk towards its YTD high at 1.4339. Having sustained that strength and also printed a higher monthly close, an eventual break above the 1.4339 level will resume its medium term uptrend and clear the way for a run at the 1.4719 level, its Dec 18’08 high. Its weekly and monthly RSI are bullish and trending higher suggesting further strength.
Downside objective starts at the 1.4200 level, its July 01’09 high ahead of the 1.4164 level, its July 17’09 high and then the 1.4072 level, its July 09’09 high. Others are located at the 1.3897 level, its July 13’09 low and the 1.3831 level, its July 08’09 low with a loss of there targeting the 1.3748 level, representing its Jun 16’09 low. That level which doubles as its range bottom between the 1.4339 and 1.3748 levels is expected to cap declines if seen. On the whole, with a third week of upside seen, EUR looks to retest and possibly trigger the resumption of its medium term upside.


GBPUSD

GBPUSD

GBPUSD: Aiming At The 1.6742 Level & Beyond

GBPUSD - With continued strength seeing the pair closing higher for a third week in a row since turning off higher at the 1.6031 level in early July’09, further upside gains are expected towards its YTD high 1.6742. This strong performance remains consistent with its medium term uptrend which will be triggered on an final break and hold above the 1.6742 level putting the pair on the path to further upside gains towards the 1.7000 level, its psycho level. Above there will expose the 1.7100 level and then the 1.7200 level. This view is clearly supported by its weekly and monthly which are both bullish and pointing higher suggesting more strength. However, on a pullback from its current price levels, the 1.6584 level, its July 23’09 high will be aimed at initially and subsequently its July 22’09 low at 1.6308 followed by the 1.6034 level, its July 13’09 low with a turn below the latter bringing declines towards its July 08’09 low at 1.5984. Its MT rising trendlinealso provides a strong upside case medium term. All in all, GBP looks to retarget the 1.6742 level and trigger its medium term uptrend as continued upside momentum remains in force.