Updating time : 18/08/2008 23:56 GMT

EUR/USD - 1.4696... Despite falling very briefly to 1.4645 in Australia y'day, euro rebounded on short covering b4 retreating in European n US sessions in part due to cross selling vs yen (unwinding of carry trades on the back of the Dow's 180-points drop), price hit an intra-day low of 1.4666 in Australia this morning b4 staging a recovery.

Despite y'day's retreat fm 1.4768, if our view that recent decline has formed a temp. low at 1.4645 is correct, downside shud be ltd n yield another rebound later, abv 1.4745 wud encourage for re-test of said res but break there is needed to signal a minor correction is under way n yield further headway to 1.4799/1.4813 (50% r of 1.4952-1.4645 n 50% r of 1.4980-1.4645 as well as being below prev. sup at 1.4815), however, 1.4840/52 (prev. sup n 61.8% r of 1.4980) shud limit gain n bring retreat later this week.

A firm break below 1.4666 wud signal downtrend has resumed n bring weakness twd 1.4614/15 (daily sup n 50% proj. of 1.4952-1.4645 fm 1.4768), however, bullish convergences on hourly oscillators shud keep price abv 1.4550/60...