EURUSD: Having experienced a sustained two-week decline to a low of 1.5360 the past week, EUR opened the week higher yesterday turning ahead of its Mar 24’08 low at 1.5341 to close Monday session at 1.5504.A follow-through to the upside was seen in early trading today suggesting more recovery higher towards the 1.5626/00 zone, its April 07’08 low/psycho level followed by the 1.5710 level, its April 18’08 low and then the 1.5895/I 5912 area, its Mar 31’08/April 10’08 highs. Beyond there will expose its psycho level/YTD high at 1.6000/18.The daily RSI has bottomed and now turned higher supporting this view. On the downside, the 1.5510 level, its April 03’08 low comes in as the initial support ahead of

the 1.5341 level, its Mar 24’08 low where an invalidation could accelerate further weakness towards its .50 Ret (1.4309-1.6018 high) at 1.5150.On the whole, while its present recovery is in order following its recent decline, such recovery is seen as correction of its short term downtrend.

Support Comments

1.5510 April 03’08 Low

1.5390/42 .382 Fib Ret/Mar 24’08 low

1.5150 .50 Ret (1.4309-1.6018 high)

Resistance Comments

1.5626/00 April 07’08 low/Psycho Level

1.5710 April 18’08 low

1.5895/I 5912 Mar 31’08 high/2008 Peak

1.6000/18 Psycho Level/YTD high

Daily Chart:EURUSD

GBPUSD: Looks To Head Further Lower Aiming At The 1.9598 Level

GBPUSD: GBP weakened in early trading today testing a low of 1.9633 which is a follow-through to Monday’s indecision as evidenced by the high wave candle pattern formation. Pressure continues to build on the 1.9598 level, its April 15’08 low where a clean break if seen should push the pair lower towards its 2008 lows at 1.9360/35 and possibly beyond. Its daily studies remain in alignment with this scenario. Resistance levels are located at the 1.9727/19 area, its Mar 05’08/April 01’08 lows and the 1.9963/ 2.0026 levels, its Feb 27’08/April 21 & 28’08 highs. Above the latter will set the stage for a move towards the 2.0191 level, its Mar 27’08 high and next the 2.0398 area, its Mar 14’08 high. All in all, the pair’s current price action continues to support its medium term trend which is clearly to the downside

Support Comments

1.9674/53 April 25’08 low/Aug 17’07 high

1.9360/35 2008 lows.

1.9180 Mar 04’08 low

Resistance Comments

1.9727/19 Mar 05’08/April 01’08 lows

1.9963/2.0026 Feb 27’08/April 21 & 28’08 highs

2.0191 Mar 27’08 high

2.0398 Mar 14’08 high

Daily Chart:GBPUSD