Updating time : 18/10/2007 00:04 GMT

EUR/USD - 1.4210...The single currency moved sideways b4 rising to 1.4231 in U.S. session following the release of weaker-than-expected U.S. housing starts data, however, cross selling in euro vs yen capped price below 1.4243 (Monday's high) n eur/usd retreated to 1.4180 b4 bouncing.

Although y'day's rebound suggests the pullback fm 1.4243 has ended earlier this week at 1.4144, only a firm break abv said res wud confirm MT uptrend has 'finally' resumed n re-test of this year's top at 1.4283 wud follow, a breach there wud extend subsequent gain twds 1.4348 (equality proj. of 1.2865-1.3853 fm 1.3360) but upside shud be capped well below 1.4381 (50% proj. of 1.3552-1.4283 fm 1.4015).

On the downside, below 1.4180 (o/n NY low) wud indicate further 'choppy' trading inside 1.4144-1.4283 wud continue n only a breach of this sup wud signal correction of the rise fm 1.4015 (Oct 9) is under way, extend weakness to 1.4126/29 (sup n 50% r of 1.4015-1.4243). As nr term outlook is mixed, we will stand aside but readers shud keep an eye out for any special daily updates...