Week of January 6, 2009

EURUSD has continued to move lower towards our next objective at 1.3378, as a sustained break will see prices continue towards 1.3241 as the next objective.  The intraday trend remains to the downside while prices hold below 1.3496, as a 1 hr open and close above 1.3496 will see prices continue higher within a 1.3496-1.3558 intraday consolidation zone before another attempt to the downside. As to the rise from the October 28, 2008 yearly low, this trend remains to the upside while prices hold above 1.3241, with a daily  close today below 1.3467 favoring continued lower prices.  While the short term trend remains to the downside, look to set EURUSD intraday shorts at 1.3531 with stop above 1.3560 for 1.3241 objective.

More updates later.  RW