In This Issue:

EURUSD: Continues To Hold Above Mt Rising Trendline - With declines to as low as 1.4176 reversed and a neutral candle printed the past week, EUR continues to maintain above its medium term rising trendlineinitiated at the 1.2456 level.

GBPUSD: Breaks Downside Losses, Recovers Higher - The shooting star triggered declines off the 1.7041 level came to a halt the past week putting the pair on a positive higher close at 1.6319.


EURUSD

EURUSD

EURUSD: Continues To Hold Above Mt Rising Trendline

EURUSD - With declines to as low as 1.4176 reversed and a neutral candle printed the past week, EUR continues to maintain above its medium term rising trendlineinitiated at the 1.2456 level. This leaves the pair biased to the upside towards its YTD high sited at the 1.4446 level where a decisive penetration will put it on the path to further upside gains towards the 1.4719 level, its Dec 18’08 high and possibly higher targeting the 1.4875 level, representing its Sept 21’09 high. On the other hand, downside targets are located at the 1.4176 level, its Sept 01’09 low and the 1.4088 level, representing rising trendline. Below there though not expected at the current price levels could drive the pair further lower towards the 1.3747 level, its Jun 16’09 low. On the whole, we maintain that while the pair holds above its rising trendline, outlook for further upside gain remains.


GBPUSD

GBPUSD

GBPUSD: Breaks Downside Losses, Recovers Higher.

GBPUSD - The shooting star triggered declines off the 1.7041 level came to a halt the past week putting the pair on a positive higher close at 1.6319. Though still biased to the downside as it is still trading below its broken MT rising trendline, with the mentioned recovery gains, GBP should build on that strength further with the initial target residing at the 1.6542 level, its Aug 24’09 high ahead of its Aug 21’09 high at 1.6622. Above there will put the GBP back into its broken trendlineand clear the way for more upside gains towards the 1.6716 level, marking its Aug 10’09 high and then its YTD high standing at 1.7041 where a turn above there will resume its medium term uptrend now on hold.
However, if the recovery now seen fades, reversal lower will follow towards the 1.6111 level, its Sept 01’09 low with a break of the latter pushing the pair further lower towards the 1.5982 level, which marks its July 08’09 low and next the 1.5798 level, its Jun 07’09 low.Overall, even though declines triggered off the 1.7041 level remains to the downside, that weakness is now being challenged by a recovery higher.