*** Weekly Technical Analysis

EURO

The EUR/USD pair's surge to the upside may continue on the intraday, short term and even weekly basis yet on the intraday basis we see the pair being overbought which may result in a downside correction yet as far as 1.3440 – 1.3375 remains intact, the upside direction remains. A four hour closing above 1.3670 will take the pair towards 1.3820.

The trading range for the week is among the key support at 1.3280 and the key resistance at 1.3920

Support 1.3575 1.3515 1.3440 1.3375 1.3280

Resistance 1.3670 1.3720 1.3770 1.3820 1.3890

Recommendation According to our analysis, we believe the pair is to gather bullish momentum from the area 1.3575 - 1.3515 with targets at 1.3820 and 1.3920 yet if trading reverses below 1.3375, our upside movements become invalid

Weekly Technical Analysis May-11-2009

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GBP

The Cable is currently targeting the 138.2% projection at 1.5685 for the upside wave that started on 23-01-2009 and ended on 09-02-2009 after maintaining levels above 1.5120. Momentum indicators however are showing the pair trading in an overbought area which may result in a downside correction yet as far as 1.5000 remains intact, the upside direction remains.

The trading range for the week is among the key support at 1.4715 and the key resistance at 1.5685

Support 1.5120 1.5000 1.4980 1.4830 1.4715

Resistance 1.5280 1.5325 1.5490 1.5530 1.5600

Recommendation According to our analysis, we believe the pair is to gather bullish momentum from 1.5120 with targets at 1.5325 and 1.5490 yet if trading reverses below 1.5000, our upside movements become invalid

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JPY

The USD/JPY pair failed to return within the upside channel that started on 21-01-2009 where we currently see it trading below the key support for the channel. The pair last week couldn't maintain levels above 99.50 – 99.60 to reach 100.70 and 101.65 as it lost bullish momentum. Up to this moment however, the pair is trading above the 50 MA at 98.35 which could be the only level to help support the incline yet as far as 99.60 remains intact, the pair will continue to decline

The trading range for the week is among the key support at 94.85 and the key resistance at 101.65

Support 98.35 97.25 96.40 95.90 94.85

Resistance 98.85 99.60 100.40 100.70 101.45

Recommendation According to our analysis, we believe the pair is to gather bearish momentum from 98.85 with targets at 97.25 and 96.40 yet if trading rebounds to maintain levels above 99.60, this will invalidate our bearish scenario

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CHF

The Dollar versus the Swissy traded as we expected as it maintained levels below 1.1300 which will open the way for the pair to target 1.0980 – 1.1015 as this represents a cluster support area. The next target is at 1.0880, the 61.8% correction for the ascending channel that started at 15-07-2008 and ended on 21-11-2008, which may extend to 1.0805 (161.8% correction for the incline from 01-03-2009 to 20-04-2009). The only obstacle for the decline is the fact that trading is within an oversold are which may suggest a slight upside correction yet as far as trading remains below 1.1300, this will confirm the downside movements and below 1.1170 will quicken the pace.

The trading range for the week is among the key support at 1.0750 and the key resistance at 1.1415

Support 1.1010 1.0980 1.0880 1.0805 1.0750

Resistance 1.1150 1.1295 1.1300 1.1380 1.1415

Recommendation According to our analysis, we believe the pair is to gather bearish momentum from 1.1150 with targets at 1.0980 and 1.0880 yet if trading rebounds to maintain levels above 1.1300, our downside movements become invalid

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CAD

The Dollar versus Loonie continues to be pressured to the downside targeting 1.1300 yet the 38.2% correction at 1.1500 for the ascending channel that started at 07-11-2007 and ended on 09-03-2009 may be an obstacle. Momentum indicators show the pair being oversold which may result in an upside correction yet the overall trend remains to the downside as trading remains below 1.1500

The trading range for the week remains among the key support at 1.1020 and the key resistance at 1.2070

Support 1.1470 1.1335 1.1275 1.1185 1.1075

Resistance 1.1635 1.1715 1.1825 1.1885 1.1960

Recommendation We adviseto avoid trading until we confirm movements below 1.1500 or relieve momentum indicators.