Week of July 14, 2008

Last Friday saw EURUSD close the week at 1.5934, a new all time high weekly close, with the previous all time high weekly close occurring the week of April 13 at 1.5816. Essentially the FX market has been in a broad consolidation pattern as evidenced on the daily chart since achieving the all time high of 1.6017 on April 22, 2008. Until last Friday, only short term intra day trade opportunities have provided the best opportunities for low risk trades, as trends have failed to extended more than 1 or 2 days. Since April 22, sellers have been selling lower while buyers have been buying higher, however, this pattern clearly broke last Friday and what will likely follow is a continuation of the multi year decline in the US dollar. Near term, we expect a correction, but any gains in the US dollar will be limited and only provide opportunity to position for what will likely be continued decline in the US dollar as we move into the weeks ahead.

For most people who are not positioned for the events that are about to unfold, the weak dollar, rising commodity prices and rising energy cost will further escalate mortgage defaults, consumer credit defaults, and result in further decline is of US equities while at the same time inflation will weigh heavily on the US economy and consumer spending. It is with a heavy heart that we make such a statement, however, for those who are liquid and positioned properly, the opportunities will be very rewarding.

As we look back on similar historical chart patterns dating back to 2002, such patterns have provided low risk trade opportunities in the FX market and subsequently resulted in a trend friendly trading environment favoring potential for dramatic account gains in the months following such patterns. For example, in 2006, after a break of a near identical pattern in April 2006, the EURUSD rallied over 1,220 pips from April 2006 thru December 2006 and managed accounts gained 113.61% during the same period. (audited and verified by Spicer Jeffries, LLP). However, at this juncture, the fall in the US dollar could be much more dramatic as this is further supported by rapidly rising prices in oil, commodities and precious metals, of which, the later were somewhat stable during the 2006 fall of the US dollar.

So, it is with this thought in mind that we urge you and all those you personally know to position for what could be a tremendous opportunity in the weeks and months ahead.

Regards,

Forex Signals Plus