As we saw last week, the pair is still undergoing a downside correction to the upside wave that started on 16-03-2008 and ended on 20-7-2008 yet it couldn't breach the 50% Fibonacci correction at 160.80 to rebound to the 38.2% Fibonacci correction at 163.00. As for today, the pair is declining yet facing a support at 161.83 which is also the 50 day moving average where it could extend to reach the 161.63 and perhaps as low as 161.20s. The 161.63 support level provides good demand for the pair.

The pair is currently facing downside pressures as we see from the direction indicators yet momentum indicators are showing that the pair is on the verge of entering an oversold area on an intraday basis. Continuing the downside movements will target the 202.20s will breaching this level could take the pair back to the 61.8% correctional level at 201.43 for the upside wave that lasted from 17-03-2008 and ended on 23-7-2008 which also is a good buying point for the pair.

Technical indicators show that the pair is being overbought as is currently facing a strong resistance at the 0.8002 level where a successful break out of this resistance will possibly take the pair to the 0.8015 level which could be seen today since direction indicators support the bullish movements. If the bearish movements overcome, then the support at 0.7974 could halt further downside movements as it also provides good demand for the pair.