Week of September 18, 2008

EURUSD corrective rise continues to unfold as the 61.8 of the 1.4909-1.3882 fall at 1.4395 holds, as a sustained break suggest further rise towards 1.4514 and eventually targeting the 38.2 of the 1.6037-1.3882 fall at 1.4705. Only a daily open and close above 1.4705 will complete this fall at 1.3882, with prices then likely to trade within a 1.4705-1.5214 zone before another attempt to the downside with 1.3054 as the objective. Intra day, a sustained break of 1.4281 will complete yesterday’s corretive rise from 1.4099 at 1.4393, with prices then likely to trade within a 1.4211-1.4281 zone before attempting another push to the upside. As to downside risk, a 1 hour open and close below 1.4168 suggest further extension to the downside with yesterday’s 1.4099 low as the objective.

GBPUSD corrective rise reached 1.8256 as prices remain in the previously mentioned 1.7806-1.8290 consolidation zone, as a sustained break of 1.8290 will see further rise with 1.8480 as the objective, as a sustained break here will see prices move within a 1.8480-1.8800 consolidation zone before another push to the downside targeting 1.7058. Intra day, look for a sustained break of 1.8081 to complete yesterday’s rise from 1.7798 at 1.8256, with prices subsequently moving within a 1.7973-1.8081 consolidation zone before another attempt to the upside. The current rise in cable is corrective as the broad trend remains down.

More updates later.

Forex Signals Plus, RW