Week of March 25, 2009

EURUSD’s corrective rise from the March 4, 2009 low of 1.2455 remains active as only a daily open and close below 1.3248 will complete this rise while the March 19, 2009 high of 1.3738 holds. As to the  the fall from the December 18, 2008 high of 1.4718, this wave is complete at 1.2455 with prices currently within the sited 1.3319-1.3854 consolidation zone as was our forecast in the March 6, 2009 update. For the session ahead, look for initial support at 1.3430 to hold with prices continuing to move higher targeting 1.3854 as the next objective.

GBPUSD also remains firm as the short term rise from March 11, 2009 low of 1.3653 remains active as only a daily open and close below 1.4346 will complete this fall while yesterday’s 1.4774 high holds, as prices will then continue to move lower within a 1.4081-1.4346 consolidation zone before another attempt to the upside. Look for prices to continue to move higher while minor support at 1.4613 holds with the March 9, 2009 high of 1.4984 as the next objective.  However, should prices sustain below 1.4613, then risk on an intraday basis will turn to the downside with 1.4519 followed by 1.4449 as the next objectives. So, for the session ahead, look for buying opportunities within the 1.4613-1.4651 zone for further price extension to the initially targeting 1.4984.

More updates later. RW