EURUSD: Maintains Higher Weekly Close, Opens Up Further Upside Risk.

EURUSD-EUR maintained a bullish tone the past week following through on its previous week strength to close higher at 1.14200. This is coming on the back of its recovery triggered off the 1.3831 level, its July 08'09 low and now leaves the pair targeting its bigger resistance residing at the 1.6339 level. A climb above there will open the door for higher prices towards the 1.4719 level, its Dec 18'08 high. This view is supported by its weekly RSI which has turned higher. Downside objective starts at the 1.4164 level, its July 17'09 high ahead of the 1.4072 level, its July 09'09 high with a turn below there leaving the pair targeting 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. On the whole, with a second week of upside seen, EUR looks to retest and possibly trigger the resumption of its medium term upside.
Directional Bias:
Nearer Term -Mixed
Short Term -BullishMedium Term -Bullish

Performance in %:Past Week: +0.71%
Past Month: -0.83%
Past Quarter: +5.89%

Year To Date: +1.65%Weekly Range:
High -1.4290
Low -1.4118

GBPUSD: Closes Marginally Higher, Holds Above Its MT Rising Trendline.

GBPUSD-While hesitation was seen on further upside gains the past week, GBP still managed to close slightly higher maintaining above its MT rising trendline. As long as that trendlinecontinues to provide support, immediate risk remains higher with the 1.6584 level, its July 23'09 high coming in as resistance accompanied by its 2009 high at 1.6742 with a clean penetration and negation of there resuming its medium term uptrend and opening further upside towards the 1.7000 level, its psycho level. Although this view is tempered with its consolidation/correction off the 1.6742 level, its overall medium term uptrend still points higher. 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. While the last two levels are expected to reverse roles and provide support, a turn below there will set the stage for a move 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.

Directional Bias:
Nearer Term -Mixed
Short Term -Mixed
Medium Term -Bullish

Performance in %:
Past Week:: +0.53%
past Month: +1.79%
Past Quarter: +14.74%
Year To Date:: +12.23%

Weekly Range:
High -1.6584
Low -1.6308