In This Issue:

EURUSD: Reversal Of Losses Highlights The 1.4844 Level - Having closed higher the past week reversing its previous week losses and rallying through its minor resistance at the 1.4720 level, its.

GBPUSD: Remains Pressured To The Downside, Targets The 1.5768 Level - Weakness triggered off the 1.7041 level remains in place as attempts at correcting higher the past week failed and pushed the pair.


EURUSD

EURUSD

EURUSD: Reversal Of Losses Highlights The 1.4844 Level

EURUSD - Having closed higher the past week reversing its previous week losses and rallying through its minor resistance at the 1.4720 level, its Sept 28’09 high, risk has now turned higher for a retarget of its YTD high at 1.4844.
This view is consistent with its broader medium term uptrend and a decisive violation of the latter level will activate that trend towards the 1.4875 level, representing its Sept 21’09 high ahead of its psycho level at 1.5000 and then the 1.5082 level, its Aug 10’08 high. Its weekly RSI which has turned higher is supportive of this view. On the other hand, if further corrective pullbacks following its Friday declines occur, the 1.4720 level will be targeted at first with a turn below there exposing the 1.4651 level, its Oct 07’09 low and then the 1.4481 level where its Oct 02’09 low/MT rising trendlineis located. We expect that zone to cap declines if tested thereby turning the pair higher again. On the whole, EUR remains biased to the upside in medium term and now looks to retarget its YTD high at 1.4844 following its past week strength.


GBPUSD

GBPUSD

GBPUSD: Remains Pressured To The Downside, Targets The 1.5768 Level.

GBPUSD - Weakness triggered off the 1.7041 level remains in place as attempts at correcting higher the past week failed and pushed the pair back down to close lower at 1.5847. That leaves downside threats towards the 1.5768 level, its Sept 27’09 low with a loss of there turning focus lower to the 1.5500 level, its psycho level and then its .50 Ret( 1.3652-1.7041 rally) at 1.5350. Our outlook for GBP remains lower shorter term as long as it continues to hold below its invalidated MT rising trendline. Its weekly momentum indicators are bearish and trending lower supporting this view. Conversely, in order for the pair to reduce its current downside pressure, it requires a break and hold above the 1.6124 level. Further out, resistance is seen at the 1.6300 level, its psycho level and then the 1.6463 level, its Sept 23’09 high where a cap could be seen. All in all, GBP remains biased to the downside shorter term and now looks to head towards the 1.5768 level.