Updating time : 18/12/2007 00:10 GMT

EUR/USD - 1.4409...The single currency met renewed selling at 1.4454 in European morning y'day n declined to a 2-month low at 1.4330 b4 rebounding later in the day as traders covered short positions n the 172-point decline in the Dow put pressure on the greenback.

Although y'day's rebound fm 1.4330 indicates recent decline has formed a temporary low there n consolidation with mild upside bias is seen, abv aforesaid res at 1.4454 (just below min. 38.2% r of 1.4656-1.4330) is needed to signal a correction is under way n further headway twds 1.4493 (50% r of 1.4656-1.4330) wud follow, however, anticipated o/bot readings on hourly oscillators on such move shud cap price below 1.4525 (prev. sup) n yield retreat later.

We have taken profit on our prev. daily long position n will stand aside for now (readers can view next corrective rise as a selling opportunity as per our weekly outlook). On the downside, below 1.4355 (o/n NY low) wud signal recent decline fm 1.4968 has once again resumed, bring re-test of 1.4330 n then twds 1.4283/85 (prev. res n 61.8% proj. of 1.4656-1.4382 fm 1.4454)...