Week of July 11-16, 2010

EURUSD’s corrective rise from the June 7, 2010 low of 1.1876 continues to unfold reaching 1.2721 with potential for further rise in the days ahead targeting 1.2784, 1.2881 and 1.2998 while 1.2398 supports. A daily open and close below 1.2398 will complete the rise from 1.1876 while 1.2721 caps. As to the braod outlook, the fall from the November 2009 high of 1.5143 remains active as ONLY a weekly open and close above 1.3124 will complete the fall while 1.1876 holds. For the week ahead, look to buy EURUSD ahead of 1.2500 for 1.2784 followed by 1.2881 targets.

XAUUSD Spot Gold rise from the January 2010 low of 1,044 continues to unfold reaching 1,265, as ONLY a daily open and close below 1,181 will complete this rise while 1,265 caps. Look for bids within the 1,128-1,181 zone to support. Only below 1,041 solicit further downside extension targeting 971 followed by 900.  While 1.041 supports, look for further rise targeting 1,403 and 1,631 into the weeks and months ahead.