Week of June 1, 2010

EURUSD’s broad outllook continues to favor further downside extension with 1.2031, 1.1877, 1.1642 and 1.1435 as the next objectives. The fall from the November 22, 2009 high of 1.5143 remains active as ONLY a weekly open and close above 1.3269 will complete this fall while the June 1, 2010 low of 1.2111 holds.  As to the medium term outlook, the fall from the January 13, 2010 high of 1.4579 continues to unfold as ONLY a daily open and close above 1.3054 will complete this fall while 1.2111 holds. Nearterm, the fall from the May 28, 2010 high of 1.2452 is complete at 1.2111 as prices have moved within the 1.2241-1.2322 consolidation zone as a 4 hour open and close outside the 1.2241-1.2322 zone will favor further price extension in the direction of the break. While 1.3054 caps, look for opportunities to sell EURUSD for 1.1435 objective.