Week of August 15-20, 2010

EURUSD’s broad outlook remains unchanged as the fall from the November 2009 high of 1.5143 remains active as ONLY a weekly open and close above 1.3124 will complete this fall while 1.1876 holds.  As to the corrective rise from the June 2010 low of 1.1876, ONLY a daily open and close below 1.2776 will complete this rise at the August 2010 current high of 1.3330. Outlook overal is mixed while last week’s near 6 handle fall suggest risk for further downside in the week ahead.  Look for a daily close below 1.2776 to favor further downside extension next targeting 1.2600 while to the upside a daily close above 1.3 to eliminate the near term downward risk.