Week of January 19, 2009

EURUSD continues the medium term consolidation phase of the 1.2328-1.4718 rise, as mentioned in our last update, a sustained break of the 1.3241-1.3805 consolidation zone will see further extension in the direction of the break.  Look for a daily open and close outside the above mentioned zone to confirm.  As to the fall from the December 18, 2008 high at 1.4718, this wave remains active as only a daily open and close above 1.3672 will complete this fall while the january 15, 2009 low at 1.3025 holds. Intraday, today’s fall from the 1.3385 high remains active while prices remain below 1.3314, as a 1 hour open and close above 1.3314 will  complete this intraday fall with prices then likely to continue to move higher within a 1.3314-1.3360 intraday consolidation zone before another attempt to the downside.  Any break of the 1.3314-1.3360 intaday consolidation  zone will see further extension in the direction of the break.

More updates later. RW