Week of October 29, 2008

EURUSD made a dramatic move to the upside during yesterday’s late US session as Wednesday’s daily close at 1.2805 suggest risk for further upside targeting 1.3298, however, a daily close above 1.2962 is needed to  add further confirmation to this outlook.  The medium and broad trend firmly remains to the downside with any move to the upside as a correction of the prevailing medium and broad trend.  As to the intraday rise from the October 28, 2008 low of 1.2326, this rise remains active as only a 1 hour open and close below 1.2646 will complete this rise while 1.2842 caps, as prices will then move  within a 1.2524-1.2646 consolidation zone before attempting another move to the upside, while below 1.2449 confirms the fall from the September 19, 2008 high at 1.4866 has once again resumed.  As to the fall from 1.4866, only a daily open and close above 1.3298 will complete this fall while 1.2326 holds, as prices will then move within a 1.3298-1.3896 consolidation zone before wave 5 to the downside targeting 1.2326 and beyond.

GBPUSD short term rise from the October 27, 2008 low of 1.5274 has reached 1.6217 as only a 1 hour open and close below 1.5857 will complete this rise at 1.6217 with prices then moving within a 1.5634-1.5857 consolidation zone before attempting another push to the upside targeting 1.6572, whereas a sustained break below 1.5497 confirms the medium term fall from the September 25, 2008 high at 1.8666 is once again underway targeting 1.5274 and beyond.  As to the medium term fall from 1.8666, only a daily open and close above 1.6572 will complete this fall while 1.5274 holds, as prices will then move within a 1.6572-1.7371 consolidation zone before attempting another push to the downside.  Intraday, look for to move above 1.6147 to confirm the rise from 1.5274 has once again resumed with 1.6572 as the objective. However, any moves to the upside are merely corrective as the medium and broad term trends firmly remains to the downside.

More updates later.