Week of November 3, 2008

EURUSD’s corrective rise from the October 28, 2008 low of 1.2328 reached the our intial objective of 1.3298 on October 30, 2008, but has since moved within the 1.2697-1.3298 consolidation zone as mentioned in our previous update.  EURUSD briefly probed below 1.2697 on Friday but failed to sustain prices below 1.2697, as a sustained break of the 1.2697-1.2926 consolidation zone will see further extension in the direction of the break. As to the broad outlook, the fall from the September 22, 2008 high at 1.4866 remains active, as only a daily open and close above 1.3298 will complete this fall with prices then moving within a 1.3298-1.3896 consolidation zone before attempting another push to the downside.

More updates later.