EURUSD: Price Hesitation Triggers Correction

EURUSD: Having hesitated at higher level prices and finally turning lower to close at 1.4370 on Thursday, EUR was seen weakening in early trading today. This development now leaves further corrective downside aiming at the 1.4339 level, its Jun03'09 high with a turn below there clearing the way for a run at the 1.4303 level, its July 28'09 high and then the 1.4200 level followed by its July 09'09 high at 1.4072. On the other hand, above the 1.4446 level will have to printed to set the stage for higher prices towards the 1.4865 level, its Sept 2009 high and then the 1.5000 level, its big psycho level. On the whole, although corrective pullbacks are now seen, the pair continues to retain its medium term uptrend.

1.4339Jun 03'09 highs
1.4303 July 28'09 high
1.4071July 09'09 high
1.4719Dec 18'08 high
1.4865 Sept 2009 high
1.5000Psycho Level


GBPUSD: Challenges The 1.6742 Level

GBPUSD: With corrective pullbacks triggered Thursday and a sell off seen pushing the pair to as low as 1.6749 yesterday, risk of further downside losses is expected. This is corroborated by its early morning declines today testing below the 1.6742 level. The first scenario is for that level to hold as support while the second will be for it to give way thereby pushing the pair further lower targeting the 1.6584 level, its July 23'09 high initially and subsequently its July 22'09 low at 1.6308. Further down, the 1.6034 level, its July 13'09 low and its July 08'09 low at 1.5984 come in as next supports. Its daily RSI remains supportive of this view as it is pointing lower. On the upside, halting its current weakness should pave the way for a challenge on the 1.7000 level followed by the 1.7041 level, its Aug 05'09 high where a clean invalidation will resume its medium term uptrend towards the 1.7100 level and then the 1.7200 level. All in all, GBP is now challenged with corrective pullbacks having lost momentum at the 1.7028 level and currently trades below the 1.6742 level

1.6584 July 23'09 high
1.6308 July 22'09 low
1.6742Jun 30'09 high
1.7000 Psycho level
1.7100 Psycho level