“Severe global slump will persist for most of 2009″ this is  what  the finance ministers from the Group of Seven nations have said this weekend in Rome.

The Foerx market  reacted by opening the week with safe haven currencies gaining back some of last Friday’s losses.

EURUSD- fell almost instantly from its Friday close  1.2860, now testing its major support area around 1.275, if breached, the next support area should be the lowest low since the break out of the financial crisis 1.27  - mind you that a clear break under can possibly cause accelerated selling in a short period of time, as stop losses are usually being triggered around these levels, flooding the market with selling orders.

On the up side - breaking  and maintaining levels above this  week’s open 1.2860 could indicate the pair is ready to cross back to test 1.29 and on.

GBPUSD - has also opened much lower, now trading around its initial support level 1.4150, a clear break would most likely send it down to test its more important support at 1.4.

On the Upside, as with EURUSD, a first sign of recovery would be the ability of this pair to firmly trade above the opening level for the week  1.4355

Z.Georgi

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