In This Issue:

EURUSD: Poised To Head Further Higher - Having broken above its strong resistance at the 1.4446 level to resume its medium term uptrend activated of the 1.2456 level, its Mar’09.

GBPUSD: A Retarget Of The 1.7041 Level Remains On The Horizon - With a two-week of upside gains and a hold firmly above its rising MT trendlinekeeping focus on the upside, GBP looks to catch up with EUR.


EURUSD

EURUSD

EURUSD:Poised To Head Further Higher

EURUSD - Having broken above its strong resistance at the 1.4446 level to resume its medium term uptrend activated of the 1.2456 level, its Mar’09 low, EUR is now poised to head further higher. With that said, we now expect the pair to target its significant overhead resistance standing at the 1.4719 level, its Dec 18’08 high with a clean violation of there putting the pair on the path to further upside gains towards the 1.4875 level, representing its Sept 21’09 high. This view is supported by bullish signals from its weekly and monthly RSI. However, if corrective pullbacks occur, price declines could seen targeting its Aug 05’09 high at 1.4446 where a reversal of roles is expected to turn the pair higher again. Furthermore, if that level snaps weakness could shape towards the 1.4176 level ahead of its psycho level coming in at 1.4000. On the whole, with its medium term uptrend triggered, risk remains higher in the days ahead.


GBPUSD

GBPUSD

GBPUSD : A Retarget Of The 1.7041 Level Remains On The Horizon.

GBPUSD - With a two-week of upside gains and a hold firmly above its rising MT trendlinekeeping focus on the upside, GBP looks to catch up with EUR which has since broken higher and resumed its medium term uptrend the past week. We maintain that while the pair trades above its MT rising trendlinebias remains to the upside for the resumption of its MT uptrend now on hold. Resistance is located at the 1.7041 level with a clearance of there resuming its MT uptrend and targeting the 1.7200 level, its psycho level ahead of its Oct 20’09 high at 1.7518. Its weekly RSI is bullish and trending higher suggesting further strength. On the downside, initial support lies at the 1.6370 level with a violation of there leaving the pair aiming further downside towards the 1.5982 level, which marks its July 08’09 and then the 1.6742 level, its July 30’09 high. Overall, we envisage the pair to continue to hold above its MT rising trendlinethere supporting its MT uptrend resumption scenario.