Week of July 31, 2009

EURUSD’s corrective fall from the July 28, 2009 high of 1.4304 has reached a low of 1.4007 during Wednesday’s US session, as prices have now moved within the 1.4120-1.4191 consolidation zone of the 1.4304-1.4007 fall.  Only a two hour open and close above 1.4120 confirms the fall from 1.4304 is complete at 1.4007 as prices will then continue to move higher towards 1.4191 while 1.4090 supports. For the session ahead, look to buy EURUSD at 1.4090 stop loss below 1.4060 for 1.4191 initial target. As to the broad outlook, the rise from the April 22, 2009 low of 1.2885 remains active with a daily open and close above 1.4234 confirming the rise to 1.4718 is underway while ONLY a daily open and close below 1.5846 will complete this rise while the June 3, 2009 high of 1.4338 caps.

GBPUSD rise from the Aprl 22, 2009 low of 1.4336 remains active as ONLY a daily open and close below 1.5846 will complete this rise while the June 30, 2009 high of 1.6743 caps. Intraday prices continue to move higher as of this writing as a 4 hour open and close above 1.6580 suggest further price extension towards 1.6743 and beyond.  Our upside target remains 1.7561 as a daily open and close above 1.6693 will confirm the rise to 1.7561 is underway.

More Updates later.

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