EURUSD: Though presently hesitating, nearer term outlook on the pair remains higher while it holds above the 1.2778 level. We see the pair heading further higher to retarget its Aug 18’10 high at 1.2921 with a violation there targeting the 1.3332 level. A break will resume its short-term uptrend and target its .50. Fib Ret (1.5143-1.1875 decline) at 1.3500 and then the 1.3691 level, its April 12’10 high. Conversely, if weakness occurs, the 1.2778 level will come in as the initial target ahead of the 1.2586 level, its Aug 24’10 low followed by the 1.2522 level, its July 13’10 high. Further weakness if seen will aim at its Jun 20’10 high at 1.2466 and possibly lower. Overall, with bull pressure continuing to develop, higher level prices are likely.
GBPUSD: Bear Threats Still Seen.
GBPUSD: Although the pair held above the 1.5470 level following a brief halt of its weakness from the 1.5996 level, it remains vulnerable to the downside in the nearer term. This is suggestive of a break back below the 1.5470 level followed by the 1.5371 level, its daily 200 ema with a loss of there targeting further downside. However, to annul this downside view, the 1.5996 level, its Aug 08’10 high will have to be violated to create scope for additional recovery towards the 1.6274 level, its Jan 24’10 high and then the 1.6466 level, its Jan 2010 high. All in all, with continued weakness in progress, further losses are likely.
Note: This is an excerpt from The Professional Suite, our daily 7 currency model analysis research package covering EURUSD, GBPUSD, USDJPY, AUDUSD, EURJPY, EURGBP and USDCAD. Get The Full Package, Including 3 FREEBonuses Now
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