EURUSD: Having declined back below its minor resistance at the 1.5593 level, its May 06’08 high on Monday, EUR decisively broke through that level Tuesday and followed through on Wednesday to close above the 1.5710 level, its April 18’08 low. Maintaining above the latter remains suggestive of further upside incursions targeting the 1.5895/I 5912 area, its Mar 31’08 high/April 10’08 high initially and then its YTD high at 1.6018.The daily momentum indicators continue to support this view. On any pullback from the present levels, the 1.5710 and the 1.5593 levels will be aimed at with a break of these levels though not envisaged triggering lower prices towards the 1.5360/41 area, its May 02’08/Mar 24’08 lows/.382 Ret (1.4438-1.6018 rally) and next its May 08’08 low at 1.5283.This view remains supportive of its short term decline off the 1.6018.On the whole, with a break and hold above the 1.5710 level, risks for a run at the 1.5895/I 5912 area is likely

Support Comments

1.5710 April 18’08 low

1.5593 May 06’08 high

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

1.5164 .50 Ret (1.4309-1.6018 high)

Resistance Comments

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

1.6018 YTD High

Daily Chart: EURUSD

GBPUSD: Nearer Term Corrective Gains Sees GBP Heading Higher

GBPUSD: A two-day higher close saw the pair held on to its gains off the 1.9362 low on Wednesday. It was seen above its daily falling channel in early morning trading today. Sustaining the mentioned upside gains should cause further corrective upmove towards its Mar 05’08/April 01’08 lows at 1.9727/19 and the 1.9963/ 2.0026 levels, its Feb 27’08/April 21 & 28’08 highs ahead of the 2.0191 level, its Mar 27’08 high. The daily Stochastics is positive suggesting further strength. On the downside, the 1.9598 level, its April 15’08 low will serve as the first support followed by the 1.9360/35 area, its 2008 lows and then the 1.9180 level, its Mar 04’07 low. All in all, while the present strength remains corrective, further upside gains remains a possibility before a decline is seen again.

Support Comments

1.9598 April 15’08 low

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