EURUSD: Still Holding Above Broken Declining Channel.

EURUSD: Although weakness was seen on Tuesday with a follow through lower in early morning trading today, as long as the pair maintains above its broken falling channel, risk remains to the upside. In such a case, the 1.3434 level which is the location of its daily 200 emawill come in as the initial support ahead of its April 06’09 high at 1.3580 with a loss of there opening the door for more upside gains towards its Mar 23’09 high at 1.3738. Its daily studies are bullish and heading higher suggesting higher prices. On the downside, its breakout point at 1.3263 will come in as the next downside target followed by the 1.3113 level, its Mar 30’09 low and the 1.3097/93 area, its Feb 09’09 high/.50 Ret (1.2456-1.3738 rally) ahead of the 1.2991 level, its Feb 23’09 high with a clearance of the latter paving the way for a decline towards its Mar 16’09 low at 1.2833.Below there will open the door for further decline towards the 1.2456 level, its Mar 04’09 high. On the whole, with the pair breaking out of its declining channel, recovery high is likely to be seen.

Support/ Comments

1.3263 Falling channel top

1.3113 Mar 30’09 low

1.3097/93 Feb 09’09 high/.50 Ret(1.2456-1.3738 rally)

Resistance Comments

1.3443 Daily 200 ema.

1.3580 April 06’09 high

1.3738 Mar 04’09 high

GBPUSD:Rising Trendline Keeps Focus Top The Upside.

GBPUSD: With the pair still holding above its rising trendline and trading above the 1.5000 level, its psycho level, we expect further upside gains to unfold. The next target now resides at the 1.5120 level, its Tuesday high with an invalidation of there putting the pair on the path to further upside gains towards the 1.5373 level, its Jan 08’09 high. The daily stochastics and RSI are positive and trending higher suggesting further upside gains. Downside target is at first located at the 1.5000 level ahead of its Feb 09’09 high at 1.4986 where a cap is expected to turn the pair higher again. Further down, supports are situated at the 1.4662 level, its Feb 23’09 high and its April 22’09 low at 1.4396 with the next downside objective located at the 1.4305 level, its Mar 06’09 high. All in all, having returned above its key resistance and held above its rising trendline, GBP now looks to target further higher prices .

Support/ Comments

1.5000/1.4981 Feb 09’09 high/psycho level

1.4662 Feb 23’09 high

1.4396 April 22’09 low

Resistance Comments

1.5066 April 16’09 high

1.5373 Jan 08’09 high

1.5722 Dec 17’08 high