Week of November 5, 2008

EURUSD remains in a consolidation phase as evidenced by the choppy price action witnessed during today’s European session.  Such phases are a normal part of trending markets and are accompanied by higher than normal market risk. During such phases, the best trade is often a no trade, as risk for loss is higher than normal in a consolidating market.  Tommorrow ECB and BOE announce their rate decisons as markets will likely remain choppy for the remainder of the session.   As to the current outlook, EURUSD’s fall from the September 22, 2008 high of 1.4866 reamins active as ONLY a daily open and close above 1.3298 will complete this fall while the October 28, 2008 low 1.2328 holds.