Week of September 5, 2008

EURUSD continues the dramatic move lower as was our forecast in the August 12, 2008 update, reaching 1.4212 during Thursday’s late US session, well beyond our 1.4358 initial target. EURUSD’s intra day fall will be complete at 1.4212 should prices close on a 1 hour basis above 1.4338, as the intra day outlook will then turn consolidative with prices likely to trade within a 1.4338-1.4417 zone before attempting another move lower. However, to the upside, a sustained break of 1.4465 will suggest further upside potential with prices moving towards 1.4555 before attempting another move to the downside. As to the downside, intra day targets are 1.4150, 1.4080, and 1.4014, with a sustained break of 1.4014 targeting 1.3987, 1.3830 and 1.3720. As to EURUSD’s medium term fall from the July 15, 2008 high at 1.6037, only a daily open and close above 1.4909 will complete the fall while 1.4212 holds, as prices will then turn consolidative with prices moving within a 1.4909-1.5340 zone before another attempt to the downside. The broad outlook from the November 2005 low at 1.1642 to the July 15, 2008 high at 1.6037 is nearing completion, as only a weekly open and close below 1.4358 will complete this rise at 1.6037 with prices subsequently moving within a 1.4358-1.3321 zone before attempting another move to the upside. Please read our August 12 and August 21 EURUSD update. Also, we suggest reading our June 25, 2008 as this contains useful information for all who read.

GBPUSD continues to move lower from the July 15, 2008 high at 2.0155 with our previously mentioned 1.7421 and 1.7058 targets as our next objectives, reaching 1.7558 during Thursday’s late US session. as risk remains for further extension lower while 1.8536 limits any upside attempts. We will have a detailed outlook for EURUSD and GBPUSD after Friday’s close. Please read our August 26, 2008 GBPUSD update.

More updates later.

Forex Signals Plus, RW