EURUSD: EUR traded sharply lower Monday taking back part of its recent gains to close the day at 1.5527.The pair however continues to look for the resumption of its nearer term recovery off the 1.5283 low as evidenced by its early morning upside gains. If a follow-through to the upside on the said gains is seen then the 1.5710 level, its April 18’08 low will be targeted followed by the 1.5895/I 5912 area, its Mar 31’08 high/April 10’08 high and ultimately its YTD high at 1.6018.The daily Stochastic and RSI are positive suggesting further strength.Conversely, failing to break and trade above the 1.5710 level will leave the pair susceptible to downside weakness towards the 1.5360/41 area, its May 02’08/Mar 24’08 lows/.382 Ret (1.4438-1.6018 rally) initially and then its May 08’08 low at 1.5283 with a clean penetration of there paving the way for lower prices towards the 1.5164 level, its .50 Ret (1.4309-1.6018 high).On the whole, although broader bias remains to the upside, short term downside weakness remains a threat.

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/April 10’08 High

1.6018 YTD High

Daily Chart: EURUSD

GBPUSD: Turns Lower Off The 1.9598 Level, Maintains Medium Term Downside Bias

GBPUSD: GBP halted its recovery off the 1.9362 low on Monday testing and subsequently turning off the 1.9598 level, its April 15’08 low to close the session at 1.9489.While a recovery of the mentioned losses was seen in early morning trading today, risks continues to point to the downside with the 1.9360/35 area, its 2008 lows and then the 1.9180 level, its Mar 04’07 low coming in as downside targets. The weekly studies remain supportive of this scenario.However, if a retest and an eventual break above the 1.9598 level occurs, its Mar 05’08/April 01’08 lows at 1.9727/19 will aimed at ahead of the 1.9963/ 2.0026 levels, its Feb 27’08/April 21 & 28’08 highs followed by the 2.0191 level, its Mar 27’08 high. All in all, GBP continues to look vulnerable to the downside in the medium term.

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