August 22nd, 2008

The EURUSD currently trades within the 1.4802-1.4909 consolidation zone as sited in our EURUSD update from yesterday. The fall from last week’s 1.5083 high is complete at Monday’s 1.4628 low once prices sustained above 1.4802. A sustained break of the forementioned consolidation zone will likely see prices continue to move in the direction of the break with an upside break targeting 1.4976, as a sustained break here, such as a 1 hour open and close above 1.4976 favoring further upside with 1.5166 as the next objective. To the downside, only a 1 hr close below 1.4801 will confirm the corrective rise from 1.4628 is complete at 1.4909 with further consolidation and downside risk within a 1.4735-1.4801 zone, while a daily close below 1.4694 will confirm prices are once again moving lower with 1.4628 as the initial target. Please read yesterday’s EURUSD outlook for details.

As to GBPUSD, the short term fall from last week’s 1.9256 high remains active as only a 1 hour open and close above 1.8796 will complete this fall at last week’s 1.8512 low, and suggest prices will continue to move higher within a 1.8796-1.8972 consolidation zone before another attempt to the downside, otherwise, the short term fall from 1.9256 remains active with further downside risk. Please read Monday’s GBPUSD outlook for more details.

More updates later.

Forex Signals Plus, RW