Week of August 7, 2008

Yesterday’s outlook forecasting EURUSD, GBPUSD and AUDUSD selling and USDCHF buying to occur between 10:00-12:00GMT was spot on as we sold EURUSD at 1.5476 at 10:03 GMT for a nice intraday gain with our MTD now at +251 pips. Today’s Asian session was very quiet and late in the session we bought GBPUSD at 1.9505 but never saw more than a few pips profit on the trade and eventually closed the trade at entry. The EURUSD also moved a bit higher in late Asia today and has essentially been held by the 38.2% of this weeks 1.5629-1.5397 fall at 1.5486. Intraday charts are favoring a move up and a retest of the 100 day EMA currently at 1.5537 should prices sustain above 1.5486. Today both ECB and BOE have rate announcements with both expected to hold rates at current levels. We will have more updates later.