FOREX UPDATE - EUR/USD Slamming back

EURUSD erased a goodly part of Friday's news-inspired gains on back of hard down hourly momentum indicators.This pullback to be corrective in nature at this time and only a break of congestion from reaction lows at 1.2741 and 1.2720 would undermine the bull channel from Jul 19's 1.2456 low.

USDCHF also reversed course Monday, but it would have to move above the 1.2357 too 1.2368 congestive resistance to relieve downward pressure from the 1.2597 bear channel from Jul 19.

GBPUSD maintained a tight consolidative tone throughout Monday's action, holding on to much of Friday's gains despite downwardly poised hourly momentum indicators. With Friday's 1.8852 low intact, we'll look for renewed upside beyond Friday's 1.9130 high as the catalyst for an extension toward the Apr 20 1.9219 high, then the Mar 8, 2005 1.9327 reaction high.