EURUSD: Although the pair’s broader bias (medium and long term) remains to the upside, a decisive break of its May 02’08/Mar 24’08 lows/.382 Ret(1.4438-1.6018 rally) at 1.5360/41 could put that view on hold and bring price acceleration towards its .50 Ret (1.4309-1.6018 high) at 1.5150 and beyond. Weekly momentum indicators and daily RSI remain supportive of this view as they are pointing lower. However, continued trading and holding above the 1.5360/41 area may trigger a recovery higher correcting its present decline off its YTD high at 1.6018 towards the 1.5510 level, its April 03’08 low at first and later the 1.5626/00 zone, its April 07’08 low/psycho level followed by the 1.5710 level, its April 18’08 low. Above there will pave the way for a run 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, EUR’s longer term trend still remains to the upside as the pair faces short term decline.

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: GBP Erodes The 1.9598 Level, Turns Focus On 1.9360/35 Area.

GBPUSD: Having broken and closed below its key support at the 1.9598 level, its April 15’08 low, the pair is now poised to push towards its 2008 lows at 1.9360/35.While a recovery was seen in early morning trading today, such price action remains corrective of its decline off the 1.9963 level(April 28’08 high).A clearance of the a said support zone(1.9360/35) should trigger lower prices towards its Mar 04’07 low at 1.9180.Weekly RSI and daily stochastics continue to point lower suggesting further weakness.Conversely,the invalidated support is now expected to reverse roles and provide resistance. Above there if seen should push the pair further higher towards 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 with a close above there keeping focus on the 2.0191 level, its Mar 27’08 high and then the 2.0398 area, its Mar 14’08 high. All in all, the pair’s short term trend remains lower and should extend losses towards the 1.9360/35 zone in the days and weeks ahead.

Support Comments

1.9360/35 2008 lows.

1.9180 Mar 04’07 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