Week of August 21, 2008

The EURUSD remains bid today as prices should contunue to move higher towards 1.4827 followed by 1.4874. We have squared all of our positions ahead of the US data due out at 12:30 GMT, but will look for confirmation to buy EURUSD after the event risk for 1.4874 intraday target . The short term fall from the August 11, 2008 high at 1.5083 remains active as only a 1 hour open and close above 1.4802 will complete this fall with Monday’s 1.4628 low. A sustained break of 1.4802 suggest prices will continue to move higher with prices likely to remain within a 1.4802-1.4909 consolidation zone before attempting another move to the downside. Only a sustained move above 1.4976 will eliminate any short term downside pressure and suggest prices will continue to move higher with potential for 1.5166 in the days ahead. To the downside, a sustained move below 1.4754 will indicate prices are likely to move lower within a 1.4706-1.4754 consolidation zone, as a 1 hr open and close below 1.4676 will confirm prices are once again moving lower with 1.4628 as the next objective. Please read our EURUSD outlook dated August 21, 2008 and the GBPUSD outlook dated Monday August 18, 2008. Additionally, the June 25, 2008 publication re: EURUSD symetrical triangle pattern breakout should prove valuable to all who read.

More updates later.

Forex Signals Plus, RW