Week of December 14, 2009

EURUSD’s rise from the April 22, 2009 low of 1.2885 remains active as ONLY a daily open and close below 1.4094 will complete this rise while the October 23, 2009 high of 1.4843 holds. A daily open and close below 1.4095 will see prices continue to move lower within a 1.3633-1.4095 consolidation zone before another attempt to the upside. For the month ahead, continue to buy EURUSD on dips, especially ahead of the August 5, 2009 high of 1.4446 and above key support at 1.4095, with 1.5176 as the objective.

GBPUSD’s rise from the April 22, 2009 low of 1.4396 is complete at the August 5, 2009 high of 1.7042, as prices will continue to move lower with 1.5719 as the next objective.  To the upside, ONLY a daily open and close above 1.6041 will confirm the corrective fall from 1.7042 is complete at the September 28, 2009 low with prices then continuing to move higher with 1.6556 followed by 1.6740 as the next objective