Week of October 3, 2008

EURUSD has reached our 1.3840 objective as the medium term fall from the July 15, 2008 high of 1.6037 has once again resumed in what appears to be the early stages of an impulsive 3rd wave from the September 22, 2008 high of 1.4866, as prices should continue to move lower towards 1.3321 and eventually 1.3054 followed by 1.2711 in the weeks ahead. The wave 2 correction from the September 11, 2008 low of 1.3882 is complete at the September 22, 2008 high of 1.4866, as the current active wave has reached a low of 1.3746 during yesterday’s US session and should continue to move lower while 1.4174 caps. As to the upside, the current fall from 1.4866 remains active as only a daily close above 1.4174 will complete this fall while 1.3746 holds, as prices will then move within a 1.4174-1.4438 consolidation zone before attempting anothet push to the downside.

More updates later.

Forex Signals Plus, RW