EURUSD: EUR failed to hold on to its recovery gains after hitting a high of 1.5593 before closing at 1.5517 on Tuesday. The pair was seen weakening in early trading today suggesting a move back towards its May 02’08/Mar 24’08 lows/.382 Ret(1.4438-1.6018 rally) at 1.5360/41 could be shaping up with a clean invalidation of there setting the stage for further losses towards its .50 Ret (1.4309-1.6018 high) at 1.5150.Weekly studies are trending lower implying further weakness. Upside targets are located at the 1.5510 level, its April 03’08 low and the 1.5626/00 zone, its April 07’08 low/psycho level initially followed by the 1.5710 level, its April 18’08 low. Other support levels are seen at the 1.5895/I 5912 area, its Mar 31’08/April 10’08 highs and then its psycho level/YTD high at 1.6000/18.On the whole, while downside pressure cannot be ruled out in the short term, the pair’s medium to longer picture continues to point higher.

Support Comments

1.5360/41 .382 Fib Ret/Mar 24’08 low/May 02’08

1.5164 .50 Ret (1.4309-1.6018 high)

1.5048 .618 Ret

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: Pushes Below The 1.9598 Level, Further Extension Expected.

GBPUSD: GBP followed through to the downside on its Tuesday weakness in early morning trading today, breaking below its April 15’08 low at 1.9598.Sustaining these losses at the end of today will suggest further price extension towards its 2008 lows at 1.9360/35 or even lower. The daily and weekly momentum indicators remain supportive of this view. On the other hand, immediate resistance resides at the 1.9727/19 area, its Mar 05’08/April 01’08 lows ahead of the 1.9963/ 2.0026 levels, its Feb 27’08/April 21 & 28’08 highs. Breaking and holding above the latter will keep focus on the 2.0191 level, its Mar 27’08 high and subsequently the 2.0398 area, its Mar 14’08 high. In short, GBP continues to face downside pressure and now looks to weaken towards its 2008 lows at the 1.9360/35 zone.

Support Comments

1.9360/35 2008 lows.

1.9180 Mar 04’08 low

1.8902 Weekly 200 Ema

Resistance Comments

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

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

Daily Chart:GBPUSD