Week of August 14, 2009

EURUSD remains firm as a daily close above 1.4330 today will see prices continue to move higher with 1.4443 as the next objective.  The corrective fall from 1.4446 is complete at Wednesday’s 1.4088, as prices essentially remain within the 1.4224-1.4308 consolidation zone. Look for a sustained break of this zone to see further price extension in the direction of the break.  As to the rise from the July 8, 2009 low of 1.3832, this wave remains active as ONLY a daily open and close below 1.4211 will complete this medium term rise. As to the broad outlook, the rise from the April 22, 2009 low of 1.2885 remains active as ONLY a daily open and close below 1.3850 will complete this rise while the August 5, 2009 high of 1.4446 caps.  For the session ahead, buy EURUSD with stop loss below 1.4230 for 1.4446 as the next objective.