Although the pair broke the support trendline that marked a succession of higher lows on the 4 hour chart we can still expect the 1.0900 area to provide enough support for a new move higher towards the 1.10 level. This is the consolidation range some of us of thinking of after the USD rally we had in the previous days, playing the range with carefull thought stops should provide a decent risk:raward ratio for both longs and shorts until we see some sort of momentum building up.

Market overview In last week’s release, we discussed the potential for extended short strength for the US dollar, although the context for this remains against a long term bear market. Given the speed of the market’s move, the potential for an overshoot is large and picking exact levels for a turnaround becomes more problematic. However, the targets for euro dollar were at 1.4722 and whilst the squeeze continues, it is difficult to stand in the way of dollar strength and an extended move into

Market overview In last week’s release, we discussed the potential for extended short strength for the US dollar, although the context for this remains against a long term bear market. Given the speed of the market’s move, the potential for an overshoot is large and picking exact levels for a turnaround becomes more problematic. However, the targets for euro dollar were at 1.4722 and whilst the squeeze continues, it is difficult to stand in the way of dollar strength and an extended move into

SELL EURUSD @1.4740, SL @1.4755, TP @1.4730 Signal Time:  August 20, 2008 08:50 GMT STATUS: ON

SELL EURUSD @1.4740, SL @1.4755, TP @1.4730 Signal Time:  August 20, 2008 08:50 GMT STATUS: ON

EUR/USD Current level-1.4752 EUR/USD is in а downtrend from 1.6039 (15 July 2008). Technical indicators are descending and trading is situated below the 50- and 200-Day SMA, currently projected at 1.5677 and 1.5227.     Yesterday’s break above the crucial 1.4701 has set a inor bottom at 1.4629 and targeted the 1.4815 resistance. Crucial on the larger frames remains 1.4951 and intraday resistance comes at 1.4815. We hold on to our idea, that the downtrend from 1.6039 is not over

Action Insight Daily Report Focus on BoE Minutes and Canadian Retail Sales Dollar retreats mildly overnight on recovery in the commodity markets. However, outlook in the forex markets is rather mixed for the moment. On the one hand, in addition to USD/CAD, USD/CHF and USD/JPY should have confirmed a short term top. However, price actions in AUD/USD and GBP/USD argues that they’re just in sideway consolidation only. The rebound in EUR/USD is not yet strong enough to confirm a short term bottom

The AUDUSD has traded sideways the past few sessions in what has taken the form of a triangle. Expectations are for a bearish break from this consolidation. The sideways trading that has taken place for the last few days is most likely a 4th wave triangle within the 5 wave drop from .9849. A drop below .8591 would satisfy minimum expectations. The January low at .8512 is potential support. This is a close up of the triangle. There is a slight chance that price exceeds .8757 in wave c of a