Week of March 23, 2009

EURUSD 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 high holds, as prices will then move within the 1.2945-1.3248 consolidation zone before another attempt to the upside.  As to the medium term fall from the December 18, 2008 high of 1.4718, this fall is complete at 1.2455 with prices currently   within the 1.3319-1.3854 consolidation zone  A daily open and close outside this zone will see further price extension in the direction of the break with 1.4234 as the upside target while 1.3021 represents the downside target.  For the session ahead, look for bids ahead of 1.3600 to hold with intial offers ahead of Thursdays 1.3738 high.

GBPUSD continues to favor further upside extension while prices remain above 1.4253, as a daily open and close below this level will see prices continue to move lower towards 1.4024 before another attempt to the upside. As to the short term rise from Friday’s 1.4393, look for further upside extension towards 1.4597, as a sustained break here will see prices continue to move higher targeting 1.4699 while 1.4530 supports.  For the session ahead, look for initial bids ahead of 1.4530 to support with 1.4699 as the next objective, while below 1.4530 will see prices continue to move lower towards 1.4400.

More updates later. RW