Wee of August 27, 2008

We are witnessing a correction in the US dollar pairs at this writing as EURUSD’s fall from Friday’s 1.4909 high is complete at yesterday’s 1.4570 low, as prices are likely to trade within a near term 1.4679-1.4779 consolidation zone before another attempt to the downside. However, the more important short term fall from the August 11, 2008 high at 1.5083 remains active as only a daily close above 1.4766 completes this fall at yesterday’s 1.4570 low, with prices then likely to trade within a 1.4766-1.4887 consolidation zone before another attempt to the downside.

GBPUSD’s fall from last Friday’s 1.8793 high remains active as only a 1 hour open and close above 1.8507 will complete this fall at yesterday’s 1.8328 low. And similar to EURUSD, the short term fall from GBPUSD’s August 11, 2008 high at 1.8793 remains active as only a daily close above 1.8684 will complete this fall at yesterday’s 1.8328 low, with prices then likely to trade within a 1.8684-1.8902 consolidation zone before attempting another move to the downside.

Price action is likely to be choppy during the session ahead as the current intraday environment appears to have higher than normal risk evident in the market. We will have move updates later.

Forex Signals Plus, RW