Week of August 28, 2008

EURUSD currently trades within the 1.4679-1.4779 consolidation zone from the 1.4909-1.4570 fall, as a sustained break of this zone will see prices continue into the direction of the break. As to the medium term fall from the July 15 high at 1.6037, this wave remains active as only a daily open and close above 1.5130 will complete this fall while 1.4570 holds. A daily open and close above 1.5130 will then see prices move into a 1.5130-1.5477 consolidation zone, with any failure to sustain above 1.5477 subsequently see prices move lower with 1.4358 as the next objective. As to the broad outlook, the rise from the November 2005 low at 1.1642 remains active as only a weekly open and close below 1.4358 will complete this rise at the July 15, 2008 high at 1.6037.

GBPUSD fall from last Friday’s 1.8797 high remains active as only a daily close above 1.8478 will complete this fall while 1.8284 holds. As to the short term fall from the August 11, 2008 high at 1.9256, only a daily close above 1.8655 will complete this fall while 1.8284 holds, as prices will then subsequently move into a 1.8655-1.8885 consolidation zone before another attempt to the downside.

More updates later.

Forex Signals Plus, RW