Updating time : 14/11/2007 23:56 GMT

EUR/USD - 1.4640... Although the single currency surged y'day on the back of active cross-buying vs jpy & gbp n rose to 1.4726 in New York, price retreated sharply fm there in tandem with intra-day selloff in cable n euro dropped to 1.4839 in late trading.

The decline fm 1.4726 suggests this wk's rise fm 1.4521 has possibly ended there n further choppy consolidation below recent 1.4753 high wud continue with downside bias for at least a strg retracement of the aforesaid upmove to 1.4599 (61.8% r of 1.4521-1.4726), however, low readings on hourly oscillators shud prevent sharp move below there n 1.4572 sup wud contain weakness, yield further sideways trading inside recent 1.4521-1.4753 range.

In view of this, selling euro on recovery is favoured. Looking ahead, only a breach of 1.4521 sup wud confirm correction of MT intermediate uptrend fm 1.4015 is under way n fall to 1.4471 (38.2% r) wud follow. Abv 1.4726 res wud risk a re-test of 1.4753 but 'bearish divergences' on hourly oscialltors shud cap euro below 1.4796 (61.8% proj. of 0.8563-1.3670 fm 1.1640) n yield correction later..