GBPUSD: Eyes The 1.6584 Level & Beyond.

GBPUSD-Having wiped out most of its two-day gains initiated off the 1.6555 level on Thursday, the 1.6584 level where its July 23’09 high is located is now being targeted. On a loss of there its 2009 high at 1.6742 will be aimed at with a clearance of there opening further upside risk towards the 1.7000 level, its psycho level. While GBP holds above its MT rising trendline, the above view remains valid. On the downside, its July 22’09 low at 1.6308 comes in as the initial support followed by the 1.6034 level, its July 13’09 low and then its July 08’09 low at 1.5984. Although the last two levels are expected to reverse roles and provide support, a turn below there will set the stage for a move lower towards the 1.5802 level, its Jun 08’09 low. All in all, GBP looks to retarget the 1.6742 level as it still maintains its overall medium term upside bias.

Support Comments
1.6308 July 22’09 low
1.6034/00 July 13’09 low/psycho level
1.5984 July 08’09 low

Resistance Comments
1.6584 July 23’09 high
1.6742 Jun 30’09 high
1.7000 Psycho level

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EURUSD: Still Looking Vulnerable Nearer Term.

EURUSD-Although EUR’s declines paused Thursday and a recovery ensued pushing the pair higher to close at 1.4065, EUR still remains biased to the downside nearer term. With that said, the pair should retarget its minor low at 1.4006/03 where its minor low/daily 50 emais located with a break and hold below there turning attention to the 1.3897 level, its July 13’09 low. Further down, on a break of the latter, the 1.3831 level, its July 08’09 low will be aimed at before the 1.3748 level, representing its Jun 16’09 low. That level which doubles as its range bottom between the 1.4339 and 1.3748 levels is expected to cap declines if seen. Its daily RSI is pointing lower suggesting further downside weakness. To the upside, immediate resistance lies at its July 09’09 high at 1.4072 ahead of the 1.4200 level with a turn above there accelerating further upside towards the 1.4303 level, its July 28’09 high. Beyond there will highlight the 1.6339 level, its YTD high with a climb above there resuming its medium term uptrend and clearing the way for higher prices towards the 1.4719 level, its Dec 18’08 high. On the whole, though pressured the downside nearer term, EUR still looks to retest and possibly trigger the resumption of its medium term upside.

Support Comments
1.4071 July 09’09 high
1.4000 Psycho level
1.3831 July 08’09 low

Resistance Comments
1.4200 July 01’09 high
1.4339 YTD high
1.4719 Dec 18’08 high

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