December 4th, 2008

EURUSD continues the medium term consolidation phase since reaching the 1.2328 low on October 28, 2008, as risk remains for further downside targeting 1.2132 followed by the November 2005 low at 1.1642. Daily trendline support comes in today at 1.2451 as a daily open and close close below 1.2400 will firm up the move towards 1.2132.  As to the upside, a 2 hour open and close above 1.2705 will see further upside as prices will then move within a 1.2705-1.2801 consolidation zone before another attempt to the downside, however, sustained prices above 1.2966 favors 1.3298.

More updates later.