EURUSD: Consolidating With Upside Outlook.

EURUSD: Consolidation to upside tone continues to be envisaged as EUR reversed its intra day losses Thursday to close higher at 1.3664. The pair still retains most of its gains triggered following a break out of its declining channel suggesting that on ending the current price consolidation, resumption of the mentioned upmove should occur. Resistance lies at the 1.3738 level, Mar 04’09 high with a break of there activating 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. Conversely, correcting lower will suggest a move towards the 1.3447 level which is the location of its 200 daily emawith a loss of there accelerating declines towards the 1.3385 level, its April 30’09 high ahead of the 1.3213 level, its May 04’09 low. Its daily stochastics which is now in overbought condition supporting this view. On the whole, though correcting, the pair’s outlook remains to the upside.

Support/ Comments

1.3447 Daily 200 ema

1.3385 April 30’09 high

1.3213 May 04’09 low

Resistance/ Comments

1.3666 May 11’09 high

1.3738 Mar 04’09 high

1.3964 Jan 05’09 high

EURJPY: Pressure Remains To The Downside Nearer Term.

EURJPY: Although reversal of intra day recovery on Thursday remains suggestive of a follow through higher, EURJPY still remains vulnerable to the downside while trading below its recent high at the 134.79 level. Downside objectives are seen at the 129.85 level, its May 06’09 low and the 126.40 level, its Mar 26’09 high ahead the 122.12 level, marking its Mar 12’09 low. To the topside, resistance levels are located at the 132.35 level, its May 01’09 high followed by Mar 24’09 high at 134.52 and then the 137.41 level, its April 06’09 high with a loss of the latter resuming its short term uptrend initiated at the 112.09 level.On the whole, with its recent recovery higher now on hold, EURJPY now looks to head further lower.

Support/Comments

129.09/26 April 24’09 high/daily 200 ema

126.40 Mar 30’09 low

122.12 Mar 12’09 low

Resistance/Comments

131.57 Daily 200 ema

132.85 Mar 04’09 high

134.52 Mar 24’09 high