Week of October 8, 2008

EURUSD reached 1.3442 low on Monday, as the outlook remains for 1.3054 target mentioned in our August 21, 2008 8:00 GMT update (please read). As to the intra day outlook, prices are consolidating from Monday’s 1.3442 low as a 2 hour open and close below 1.3559 confims prices are once again moving lower with 1.3442, 1.3321 and 1.3054 as the objective. As to the medium term outlook, the fall from the July 15, 2008 high of 1.6037 remains active as the pair is currently in an impulsive wave 3 from the September 22, 2008 high of 1.4866 with our projected wave 3 extension targeting 1.2711. However, a daily close above 1.3986 will complete the fall from 1.4866 while 1.3442 holds, as prices will then likely trade within a 1.3986-1.4322 consolidation zone before attempting another move to the downside. As to the broad outlook, the trend remains up from the 2001 0.8227 low, as only a a monthly open and close below 1.3054 will complete the rise at the July 15th 2008 high of 1.6037, with prices then likely to trade within a 1.1210-1.3054 consolidation zone before attempting another move to the upside. I would like to empahsize that the trend intensity is very bullish USD as was my forecast since mid August, as the medium term rise from the November 2005 low of 1.1642 reached 1.6037 on July 15, 2008 and took 32 months in the process, while the fall from 1.6037 recovered more than 50% of this rise in a mere 4 months. Please read my June 25, August 18, 2008-7:00 GMT, August 21, 2008-8:00 GMT updates.

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More updates later.

Forex Signals Plus, RW