Week of July 25-30, 2010

EURUSD’s outlook for the week ahead is essentially unchanged from last week as last week we looked for EURUSD to move within a 1.2700-1.3124 range whereas the actual range last week was 1.2734-1.3027. The rise from the June 2010 low of 1.1876 remains active as ONLY a daily open and close below 1.2538 will complete the rise while last week’s 1.3027 caps. The broad outlook still favors further downside risk in the weeks ahead while prices remains below 1.3124, as ONLY a weekly open and close above 1.3124 will complete the fall from the November 2009 high of 1.5143 while 1.1876 holds.

GBPUSD’s outlook favors further upside extension in the week ahead with the 200 day moving average of  1.5566 as the next objective while 1.5100 supports. As to the rise from the 2010 low of 1.4226, this wave remains active as ONLY a daily open and close below 1.4995 will complete this rise while the July 2010 high of 1.5471 caps, otherwise, look for prices to move higher in the week ahead targeting 1.5566, 1.5605 and 1.5930 in the days ahead.