December 16th, 2008

EURUSD continues the corrective phase from the October 28, 2008 low at 1.2328, as the fall from the September 22, 2008 high at 1.4866 is complete at 1.2328, with prices now trading within the previously mentioned 1.3298-1.3896 consolidation zone. Risk for further upside potential remains, with 1.3896 as the next objective, however,  ONLY above 1.3896 would suggest the move up from 1.2328 is more impulsive than corrective favoring further upside potential.  Intraday risk favors USD buying while prices sustain below 1.3700 with 1.3619 as the intial target, h0wever risk for choppy intraday price action remains high until FOMC rate decision later today.

More updates later. RW