Week of August 19, 2009

EURUSD’s fall from the August 13, 2009 high of 1.4326 remains active as ONLY a 2 hour open and close above 1.4152 will complete this fall while the August 17, 2009 low of 1.4045 low holds. No change in the broad outlook, as 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 holds. Daily studies are attempting to confirm a sell as a daily close below 1.4045 will confirm further downside extension in the days ahead.  For the session ahead, sell EURUSD within the 1.4113-1.4129 zone  for 1.4015 initial target.

GBPUSD’s corrective fall from the August 5, 2009 high of 1.7042 remains active as ONLY a daily open and close above 1.6567 will complete this fall at the August 17, 2009 low of 1.6274.  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 completes this rise while 1.7042 caps. For the session ahead, sell GBPUSD within the 1.6493-1.6518 zone for 1.6274 as the initial target.