Daily Technical Strategist
Today's Focus: EURUSD & GBPUSD
- EURUSD: Recovers Off Intra Day Low, Continues To Target The 1.4751/52 zone And Beyond
- GBPUSD: Medium Term Weakness Continues To Point Lower, Next Downside Seen At The 1.9388/35 Zone
EURUSD
An intra day reversal after the pair weakened to as low as 1.4613 level on Tuesday now suggests its continued focus on the 1.4751/52 zone, its Nov 09'07/Dec 11'07 highs remains in force with an eventual break of there turning it higher towards its Feb 02'08/2007 peaks at 1.4955/67 and then its psycho resistance at 1.5000.A rising channel on the 4 hourly chart and its bullish daily momentum indicators remain supportive of this view. On the downside, supports are seen at the 1.4444/86 area, its .786 Ret/daily 100 ema initially and then its ST riding trendline currently at 1.4419 followed by its Jan 22'08 low at 1.4364.Beyond there if seen will aim at the 1.4310 level, its Dec 20'07 low where a halt is expected. On the whole, a break and close above
| Support |
Comments |
| 1.4448/86 |
.786 Ret/daily 100 ema |
| 1.4364 |
Jan 22'08 low |
| 1.4310 |
Dec 20'07 low |
| 1.4278 |
Sept 28/07 |
| Resistance |
Comment |
| 1.4577 |
Jan 01'08 low |
| 1.4751/52 |
Nov 09'07/Dec 11'07 Highs |
| 1.4955/67 |
Feb 01'08 high/2007 Peak |
| 1.5000 |
Psycho Level |
GBPUSD
Although an early morning reversal higher is now in process following the pair's downside weakness off the 1.9736 level(Feb 14'08),as long as that level and the 1.9878/1.9938 zone, representing its Daily 50/ Sept 18'07 low/weekly 50 emas remain intact the pair is expected to break lower and trigger its medium term downtrend. In such a case, its Mar'07 low at 1.9180 will be targeted.However, if the present upside recovery is sustained beyond the 1.9736 and 1.9878/1.9938 levels then further upside gains towards its psycho resistance at 2.0000 and above could follow. The daily RSI has confirmed the current recovery suggesting more strength. All in all, putting a positive close today may call for further corrective recovery but such a recovery still remains with its medium term downside trend.
| Support |
Comments |
| 1.9507/1.9481 |
Weekly 100 ema/Jan 11'08 low |
| 1.9335 |
Jan 22'08 low |
| 1.9180/67 |
Mar'07 low/1.272 Fib Ext |
| 1.8965 |
1.618 Fib Ext |
| Resistance |
Comments |
| 1.9653/23 |
Aug 17'07 high/.50 Ret (1.8091-2.1160 rally)/Jun 08'07 low |
| 1.9753 |
Dec 24'07 low |
| 1.9878/1.9938 |
Daily 50/ Sept 18'07 low/weekly 50 emas |
Mohammed Isah
Market Analyst
www.fxtechstrategy.com
This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which the author incur any responsibility. The does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report
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