February 17th, 2009

EURUSD broke below the lower daily trendline support from the October 28, 2008 low of 1.2328 as a daily open and close below 1.2777 will see prices continue to move lower towards 1.2328. As mentioned in the August 21, 2008 outlook,(please read), the broad outlook continues to favor a retest of the November 2005 low at 1.1642 with a weekly open and close below 1.2583 confirming prices will continue to move lower with 1.1642 as the objective.  Intraday, look for prices to find intial resistance around 1.2721 before another attempt to the downside.

More updates later. RW