Week of November 19, 2008

EURUSD remains in a broad consolidation pattern with the descending trendline from the October 30, 2008 high at 1.3298 coming in at 1.2700 today and continuing to limit any upside attempts. Risk remains to the downside while prices hold below this trendline, as a daily close above will see further extension to the upside. As to the downside, look for another attempt to sustain prices below the 1.2400 level, as a daily close below will see further downside extension with 1.2132 as the next objective.

More update later. RW