Updating time : 12/08/2008 00:05 GMT

EUR/USD - 1.4905...Euro fell in Australian morning y'day to 1.4908 due to geopolitical concerns over the Russian-Georgian conflict b4 rebounding to 1.5084 on short-covering n also 'hawkish' comments fm ECB's Klaus Liebscher, however, the single currency declined again later in the day to 1.4880 as worries remained that the fallout fm the U.S. economy wud affect markets elsewhere.

Although y'day's selloff to a new 5-month low suggests recent decline fm 1.6040 (last month's record high) may extend marginally to 1.4870 (50% proj. of 1.5336-1.4908 fm 1.5084), the bullish convergences on hourly oscillators shud prevent steep fall n reckon 1.4819/27 (50% proj. of 1.5336-1.4908 fm 1.5084 n 38.2% r of 1.2865-1.6040) wud hold, yield a corrective rebound later. Therefore, we will refrain fm chasing this move for day trade (readers shud note the revised stop for our weekly short position).

Abv 1.4969 (prev. sup) wud signal a temporary low has been formed n bring retrace. to 1.5006/11 (61.8% r of 1.5084-1.4880 n res) but 1.5054/64 (38.2% r of 1.5336-1.4880 n present lvl of 55-hr ema) shud limit gain n yield consolidation.

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