Week of November 26, 2008

EURUSD reached 1.3080 yesterday, just 9 pips shy of our target mentioned in Tuesday’s update, as the EURUSD has now closed higher for 3 consecutive days, which last occurred on September 15, 2008.  Look for prices to continue to move higher as a 2 hour open and close above 1.3101 will confirm the rise to 1.3298 has resumed, with a daily open and close above 1.3298 completing the fall from the September 22, 2008 high of 1.4866 at 1.2328.  As to the current active wave from the Novemver 20, 2008 low of 1.2423, only a daily close below 1.2829 will complete this rise while 1.3080 holds, as prices will then move within a 1.2674-1.2829 zone before attempting another push to the upside, while above 1.3298 will see prices continue to move higher within a 1.3298-1.3896 consolidation zone.  As to the fall from the July 15, 2008 high of 1.6037, this wave remains active as only a monthly close above 1.3745 will complete this fall while 1.2328 holds, as prices will then continue to move higher within a 1.3745-1.4183 consolidation zone before attempting another move to the downside. Shorterm, the trend remains up while prices hold above 1.2829, as the medium and broad trend renmain firmly to the downside.

More updates later. RW