Week of June 5, 2009

EURUSD fall from the June 3, 2009 high of 1.4338 reached 1.4069 yesterday and remains in the the 1.4172-1.4235 intraday consolidation zone as a sustained break outside this zone will see further price extension in the direction of the break. As to the rise from the May 28, 2009 low of 1.3792, this rise remains active as ONLY a daily open and close below 1.4129  will complete this rise with prices then continuing to move lower within the 1.4001-1.4129 consolidation zone before another attempt to the upside.

GBPUSD has sustained below the previously sited 1.6161-1.6353 consolidation zone as risk for lower prices remains with the May 28, 2009 low of 1.5852 as the next objective.  Look for prices to continue lower with a susatined break of 1.5852 favoring further downside risk towards 1.5796.

We will have a detailed outlook for the week ahead after today’s close.