Week of August 17, 2009

EURUSD’s corrective fall continues to unfold with the July 29, 2009 low of 1.4007 as the next objective.  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, as prices will then continue to move lower within a 1.3481-1.3850 before another attempt to the upside. For the session ahead, sell EURUSD within the 1.4155-1.4174 zone with stop/reverse above 1.4197 for 1.4007 as initial downside target while to the upside  1.4264 as the initial objective.

GBPUSD continues to move lower with 1.6031 as the next objective. As to the broad outlook, the rise from the April 22, 2009 low of 1.4396 remains active as ONLY a daily open and close below 1.6031 will complete this rise while the August 5, 2009 high of 1.7042 caps, as below 1.6031 will see prices continue to move lower within a 1.5407-1.6031 consolidation zone before another attempt to the upside. For the session ahead, sell GBPUSD within the 1.6452-1.6487 zone with stop/reverse above 1.6509 for initial downside target of 1.6031 while to the upside 1.6638 as the objective.

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