Week of July 27, 2009

EURUSD’s rise from the April 22, 2009 low of 1.2885 remains active as ONLY a daily open and close below 1.3783 completes this rise while the June 3, 2009 high of 1.4338 caps. For the session ahead, look for EURUSD to continue to move higher towards 1.4290 while 1.4115 limits the downside as a sustained break of 1.4290 will see a retest of the June 3 high of 1.4338 followed by 1.4363.

GBPUSD’s rise from the April 22, 2009 low of 1.4396 remains active as ONLY a daily open and close below 1.5846 completes this rise while the June 30, 2009 high of 1.6743 caps. As to the upside, a daily open and close above 1.6693 will see further price extension with 1.7516 as the objective. For the session ahead, look for further intraday rise towards 1.6585 followed by 1.6743 while 1.6373 limits the downside.