EURUSD: While a recovery was staged on Wednesday and a follow-through to the upside was seen in early morning trading today, as long as the pair continues to trade below its minor resistance at 1.5593(May 06’08 high) and the 1.5710 level, its April 18’08 low odds are for a turn lower towards the 1.5360/41 area, its May 02’08/Mar 24’08 lows/.382 Ret (1.4438-1.6018 rally) and then its May 08’08 low at 1.5283.Below there,if seen will leave the pair targeting the 1.5164 level, its .50 Ret (1.4309-1.6018 high) and then its .618 Ret at 1.5048.Weekly studies remain supportive of this scenario. On the upside, if the pair breaks and closes above the 1.5593 and 1.5710 levels ,it should then head further higher towards the 1.5895/I 5912 area, its Mar 31’08 high/April 10’08 high. On the whole, short term bearish structure remains in place and any nearer term recovery should be temporary.

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

1.5593 May 06’08 high

1.5626/00 April 07’08 low/Psycho Level

1.5710 April 18’08 low

1.5895/I 5912 Mar 31’08 high/April 10’08 High

Daily Chart: EURUSD

GBPUSD: Further Weakness Still Envisaged.

GBPUSD: GBP’s weekly and daily falling channels continue to suggest that further risks remain to the downside supported by its weekly momentum indicators which are trending lower. While an intra day recovery lead to a higher close on Wednesday, such strength is seen as corrective of its recent decline and the pair should turn lower on completing that corrective recovery. Support levels are located at the 1.9360/35 area, marking its 2008 lows and then the 1.9180 level, its Mar 04’07 low while immediate resistance resides at the 1.9598 level, its April 15’08 low followed by the 1.9727/19 area, its Mar 05’08/April 01’08 lows and next the 1.9963/ 2.0026 levels, its Feb 27’08/April 21 & 28’08 highs. Further resistance resides at the 2.0191 level, its Mar 27’08 high and its Mar 14’08 high at 2.0396.All in all,GBP remains vulnerable to downside and should test and ultimately break through at the 1.9360/35 zone in the days and weeks.

Support Comments

1.9360/35 2008 lows.

1.9180 Mar 04’07 low

1.8902 Weekly 200 Ema

Resistance Comments

1.9598 April 15’08 low

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

Daily Chart: GBPUSD