Daily Technical Strategist

Today's Focus: EURUSD & GBPUSD

• EURUSD: Risks Continue To Point Lower.
• GBPUSD: Further Weakness Still Envisaged.

EURUSD

While a recovery was staged on Wednesday and a follow-through to the upside was seen in early morning trading today, as long as the pair continues to trade below its minor resistance at 1.5593(May 06'08 high) and the 1.5710 level, its April 18'08 low odds are for a turn lower towards the 1.5360/41 area, its May 02'08/Mar 24'08 lows/.382 Ret (1.4438-1.6018 rally) and then its May 08'08 low at 1.5283.Below there,if seen will leave the pair targeting the 1.5164 level, its .50 Ret (1.4309-1.6018 high) and then its .618 Ret at 1.5048.Weekly studies remain supportive of this scenario. On the upside, if the pair breaks and closes above the 1.5593 and 1.5710 levels ,it should then head further higher towards the 1.5895/I 5912 area, its Mar 31'08 high/April 10'08 high. On the whole, short term bearish structure remains in place and any nearer term recovery should be temporary.

GBPUSD

GBP's weekly and daily falling channels continue to suggest that further risks remain to the downside supported by its weekly momentum indicators which are trending lower. While an intra day recovery lead to a higher close on Wednesday, such strength is seen as corrective of its recent decline and the pair should turn lower on completing that corrective recovery. Support levels are located at the 1.9360/35 area, marking its 2008 lows and then the 1.9180 level, its Mar 04'07 low while immediate resistance resides at the 1.9598 level, its April 15'08 low followed by the 1.9727/19 area, its Mar 05'08/April 01'08 lows and next the 1.9963/ 2.0026 levels, its Feb 27'08/April 21 & 28'08 highs. Further resistance resides at the 2.0191 level, its Mar 27'08 high and its Mar 14'08 high at 2.0396.All in all,GBP remains vulnerable to downside and should test and ultimately break through at the 1.9360/35 zone in the days and weeks.

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