Week of July 18, 2008

As the week began, our outlook for the week was for a move lower in the US dollar and specifically a move higher in the EURUSD with the initial target at 1.6017 which was achieved. Once the EURUSD reach 1.6037, a few pips beyond our initial target, the US dollar corrected lower and saw the EURUSD essentially spend the remainder of the week within the 1.5774-1.5874 consolidation zone which is the 61.8% and the 38.2% of the 1.5611-1.6037 rise. We remain bullish EURUSD while the pair consolidates within the above mentioned zone and only if prices close on a daily basis below 1.5712 will the outlook favor further downside before another move higher.

Elsewhere, the JPY pairs and the CHF crosses where the best opportunities from mid week on but we were unable to see the pairs correct to our entry point and missed the greater part of the moves. Our GBPUSD and USDCHF trades earlier in the week were great calls but the stop loss orders barley filled before the two trades rallied for a combined 120 pips. So, for the month our performance remains positive as we are very confident that our winning performance of recent months will continue in the weeks and months ahead as we look forward to providing the excellence that our valued customers have come to expect.

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