Week of June 4, 2009

EURUSD’s rise from the May 28, 2009 low of 1.3792 remains active with the December 18, 2008 high of 1.4718 as the next objective.  Only a daily open and close below 1.4129 will complete this rise while  yesterday’s 1.4338 high holds, as prices will then continue to move lower within a 1.4065-1.4129 consolidation zone before another attempt to the upside.  As to yesterday’s intraday fall from 1.4338, this wave is complete at yesterday’s 1.4108 low with prices now within the 1.4196-1.4250 consolidation zone.  Look for a sustained break of this zone to see further price extension in the direction of the break.

GBPUSD’s rise from the May 28, 2009 low of 1.5852 is complete at yesterday’s 1.6662 high as prices have moved within the 1.6161-1.6353 consolidation zone. In that prices are now within this zone, a sustained break of this zone will see further price extension in the direction of the break.  The medium term rise from the April 22, 2009 low of 1.4396 remains active as ONLY a daily open and close below 1.5796 will complete this wave while yesterday’s 1.6662 high holds. As to yesterday’s fall from 1.6662, this wave remains active as only a 1 hour open and close above 1.6381 will complete this fall while today’s 1.6208 low holds. Once prices have moved within the 1.6381-1.6489 zone, look for a sustained break of this zone to see further price extension in the direction of the break.