Week of March 1-5, 2010

EURUSD moved higher last week as was my forecast with nearterm risk for further rise towards 1.3788 while 1.3548 supports. However, the February monthly close suggest further downside extension will unfold in March with 1.3089 as the next objective while prices remain below 1.4093. Our sited target for the week of Feb. 14 was 1.3418 as prices reached 1.3444, thus. a daily open and close below this level will firm the outlook for 1.3089. For the week ahead, EURUSD remains in a near term consolidation pattern as risk for further rise 1.3788 followed by 1.3878 remains while prices hold above 1.3548. Look for opportunity to sell EURUSD ahead of 1.3878 for 1.3089 in the weeks ahead.

GBPUSD remains offered as has been my forecast for several weeks with 1.4854 as the next objective. The medium term fall from the January 19, 2010 high of 1.6457 remains acive as ONLY a daily open and close above 1.5615 will complete this fall with prices then contnuing to move higher within a 1.5615-1.5937 consolidation zone before another attempt to the downside.