August 20th, 2008

The EURUSD’s fall from last weeks 1.5083 high remains active as only a one hour open and close above 1.4802 will complete this fall at yesterday’s 1.4628 low. Should prices close above 1.4802, the pair will then enter into a 1.4802-1.4909 consolidation zone before attempting another move to the downside. Again, until prices open and close on a one hour basis above 1.4802, the short term fall from 1.5083 remains active. Now, as to yesterday’s intraday corrective rise from 1.4628, this rise remains active and not until prices open and close on a 30 minute basis below 1.4737 will this rise be complete at yesterday’s 1.4805 high, as a sustained break of 1.4737 suggests further consolidation within a 1.4696-1.4737 consoldidation zone. Should prices consolidate within this zone, then an upside sustained break 1.4761 or a downside sustained break of 1.4670 will see follow thru price action in the direction of the break. Please read Monday’s GBPUSD outlook, as we will have a similar outlook for EURUSD later today.

Forex Signals Plus, RW