September 10th, 2008

We were spot on with our EURUSD intra day outlook yesterday as prices moved to the 38.2% of the 1.4427-1.4047 fall, as was our forecast, then falling back below 1.4100, with prices currently in a consolidation phase with a slight upward intra day bias as of this writing. Our outlook remains unchanged, as we continue to favor rallies as selling opportunities as the medium term trend from the July 15, 2008 high at 1.6037 remains down and not until prices open and close on a daily basis above 1.4909 while 1.4047 holds will the medium term fall be complete. Elsewhere, GBP appears to be broadly firm today with potential for an intra day extension to 1.7700 for GBPUSD, but here again, the trend remains firmly down as rallies should be used as selling opportunities.

More updates later.

Forex Signals Plus, RW