Week of May 17, 2010

EURUSD’s broad outlook remains offered as the fall from the November 22, 2009 high of 1.5143 continues to unfold reaching our previously sited target of 1.2455 (2009 low) and 1.2328 (2008 low) with further downside extension next targeting 1.1877 followed by the November 2005 low of 1.1642.  As to the upside, ONLY a weekly open and close above 1.3345 will complete this fall from 1.5143 while today’s 1.2233 holds.  Regarding the medium term outlook, the fall from the January 13, 2010 high of 1.4579 remains active as ONLY a daily open and close above 1.3166 will complete this fall while today’s low of 1.2233 holds.  As to the short term outlook, the fall from the May 10,2010 high of 1.3094 remains active as ONLY a daily close above 1.2562 will complete this fall while today’s 1.2233 low holds.  A daily close above 1.2562 will see prices continue to move higher within a 1.2562-1.2765 consolidation zone before another attempt to the downside.  Once prices have moved within the above mentioned consolidation zone, a sustained break of this zone will see further prices extension in the direction of the break.