EURUSD: Risk Continues To Point Higher, Nearer Term Correction Continues To Build Up

EURUSD- EUR’s medium term uptrend continues to imply further upside gains though a corrective pullback in the nearer term remains on the cards. Such upside incursion looks to initially push through the 1.4918 level, its 1.618 Fib Ext. (monthly Chart) with a clean break of the 1.4967 level, marking its 2007 high paving the for the resumption of its MT uptrend towards the 1.5000 level, its psycho level and even higher targeting the 1.5100 level, its psycho level. On the contrary, its failure ahead of the 1.500 level producing a long logged doji-like candle pattern if triggered should bring downside pressure towards the 1.4724/51 area, its Nov 09 & 14’07 highs followed by the 1.4602/81 area, which marks its .382 Ret (1.4015-1.4967 rally).Trading below there will open the door for lower prices aiming at the 1.4535/20 level, its Mar’1995 high/Nov 12’07 high. This solid support level is expected to halt further downside and turn the pair higher. The daily momentum indicators remain supportive of this view. On the whole, as long as the pair continues to trade within its daily or even its weekly channel, the medium and longer term trend remain to the upside.

Support Comments

1.4724/51 Nov 14’07 High/2007 Peak

1.4600 Psycho Level

1.4535/60 Broken Rising Channel Top/Mar’1995 high

1.4463/96 1.618 Fib Ext. (daily chart) /weekly rising channel top

Resistance Comments

1.4918 1.618 Fib Ext (monthly

1.5000 Psycho Level

1.5100 Psycho Level

GBPUSD: Upside Acceleration Required To Offset Downside Threat

GBPUSD- Although a run to the upside pushing the pair above the 2.0652 level, its July 24’07 was seen at the end of Monday trading session, further price acceleration through its rising channel top currently at 2.0898 is needed to reduce downside pressure and bring more gains towards its YTD high at 2.1160 printed in early Nov’07.Breaking and holding above there will keep pressure on the upside. The daily RSI and Stochastics have turned higher suggesting further upmove.On the downside, the 2.0652 level is seen as the nearby support which is followed by the 2.0461/94 zone, its Aug 03’07/Oct 01’07 highs and then the 2.0367/89 level, its Sept 12’07 high/rising channel base. Below there will turn focus to the 2.0181 level, which is the location of its weekly channel base. All in all,GBP must break and close above the 2.0898 level to bring gains towards the 2.1160 level and possibly higher.

Support Comments

2.0652 July 24’07

2.0461/94 Aug 03’07/Oct 01’07 highs

2.0365 Sept 12’07 high

2.0319 Sept 24’07 high

Resistance Comments

2.0876 Rising Channel Top

2.0906/29 Nov 02’07 high/1.272 Fib Ext

2.1161 2007 Peak