Week of September 8, 2008

EURUSD continued to move lower last week as was our forecast, reaching 1.4194, well beyond our 1.4358 initial target sited in our August 12, 2008 update. Last month saw an unprecedented move lower in the EURUSD, as the pair dropped over 10 handles during the month of August and closed near the month’s lows. Never before has such a move ever been witnessed in the EURUSD, and not since the 1992 fall in the Deutsche Mark has there been such a move in a single month. Our outlook remains unchanged as risk remains for further downside as only a daily open and close above 1.4898 while 1.4194 holds will complete EURUSD’s fall from 1.6037 and suggest further consolidation before another attempt to the downside. As to the intra day outlook, a 1 hour open and close above 1.4429 will confirm the short term fall from the August 28 high at 1.4809 is complete at last week’s 1.4194 low, as prices will then subsequently trade within a 1.4429-1.4574 zone before another move to the downside with 1.4150 and 1.4014 as the next objectives.

Forex Signals Plus, RW