Week of July 1, 2009

EURUSD’s broad outlook remains bid as the rise from the April 22, 2009 low of 1.2885 reached 1.4338 on June 3, 2008, as ONLY a daily open and close below 1.3783 will complete this rise while the June 3 high of 1.4338 caps.  As to the intraday outlook, the fall from yesterday’s 1.4152 high remains active as only a 30 minute open and close above 1.4058 will complete this fall with prices then continuing to move higher initially targeting 1.4094. Once intraday prices have moved within the 1.4058-1.4094 consolidation zone, a break outside this zone will see further price extension in the direction of the break with 1.4152 as the upside target and 1.3950 as the downside target. However, the prevailing trend remains to the upside while prices remain above 1.3783.

GBPUSD’s broad outlook remains bid as ONLY a daily open and close below 1.5846 will complete the rise from the April 22, 2009 low of 1.4396 at yesterday’s 1. 6743 high.  As to the intraday from Tuesday’s 1.6743 high, this fall remains active as only a 1 hour open and close above 1.6521 will complete this fall while today’s Asian session low of 1.6383 holds. However, daily studies and yesteray’s daily close favor lower prices in the days ahead with 1.6231 as the next objective. For the session ahead, look to sell GBPUSD within the 1.6521-1.6563 zone for 1.6231 objective.