March 14-19, 2010 – Sunday 22:00 GMT

EURUSD’s medium term fall from the January 13, 2010 high of 1.4579 remains active as ONLY a daily open and close above 1.3871 will complete this fall while the March 2, 2010 low of 1.3433 holds, as prices will then continue to move higher within a 1.3871-1.4141 consolidation zone before another attempt to the downside. Once prices have moved with the sited consolidation zone, a sustained break of this zone will see further price extension in the direction of the break. The medium term outlook favors further downside risk with a weekly open and close below 1.3482 favors significant downside risk with 1.3089, 1.2885 and 1.2455 as the objective in the weeks ahead. As to the near term corrective rise from 1.3433, this rise remains active as ONLY a 4 hour open and close below 1.3662 will complete this rise while Friday’s 1.3796 caps.

For the session ahead, look to buy EURUSD within the 1.3640-1.3700 zone, stop loss below 1.3600 for 1.3796 followed by 1.3871 targets.

Long Term Trade Recommendation: Sell EURUSD within 1.3871-1.4006 zone with stop loss above 1.4086 for 1.3433,1.3089, and 1.2885 targets.

GBPUSD medium term outlook remains offered as the fall from the January 19, 2010 high of 1.6457 continues to unfold as ONLY a daily open and close above 1.5422 will complete this fall while the March 1, 2010 low of 1.4782 holds. A daily open and close above 1.5422 will see prices continue to move higher within a 1.5422-1.5817 consolidation zone before another attempt to the downside. The medium term and broad term outlook continue to favor further downside risk as a WEEKLY open and close below 1.4948 favoring significant downside extension is underway with 1.4453 followed 1.3653 as the next objectives. As to the broad outlook, a monthly open and close below 1.3653 will solicit dramatic collapse in GBPUSD with prices targeting 1.0345 in the months ahead.

XAUUSD, (Spot Gold) rise from the April 2009 low of 864.06 is complete at the December 3, 2009 high of 1,226.36 as prices have now moved within the 1,002.46-1,140.86 consolidation zone as a weekly open and close outside this zone will see further price extension in the direction of the break. Near term risk suggest prices will move lower in the days ahead within a 1,067.93-1.106.36 zone before another attempt to the upside.