Daily Technical Strategist
Today's Focus: EURUSD & GBPUSD
- EURUSD: While ST Risk Continues To Point Lower, Nearer Term Recovery Is Now Hesitating.
- GBPUSD: Recovers Slowly But Remains Biased To The Downside
EURUSD
Although the pairs current recovery off the 1.5383 low may have some way to go, as long as the said corrective upside gains are limited to the 1.5593 level, its May 06'08 high and the 1.5710 level, its April 18'08 low risk to downside remains with the 1.5360/41 area, its May 02'08/Mar 24'08 lows/.382 Ret (1.4438-1.6018 rally) and its May 08'08 low at 1.5283 seen as downside objectives. Below the latter will open the door for further downside weakness towards the 1.5164 level, its .50 Ret (1.4309-1.6018 high) and then its .618 Ret at 1.5048.This view remains supported by its weekly studies.However,if the 1.5710 level is taken out, downside pressure will be minimized bringing more upside gains towards the 1.5895/I 5912 area, its Mar 31'08 high/April 10'08 high and even higher. On the whole, while the broader bias remains to the upside, current price action still suggests a bearish short term trend.
| Support |
Comments |
| 1.5360/41 |
.382 Fib Ret/Mar 24'08 low/May 02'08 |
| 1.5164 |
.50 Ret (1.4309-1.6018 high) |
| 1.5048 |
.618 Ret |
| Resistance |
Comments |
| 1.5593 |
May 06'08 high |
| 1.5626/00 |
April 07'08 low/Psycho Level |
| 1.5710 |
April 18'08 low |
| 1.5895/I 5912 |
Mar 31'08 high/April 10'08 High |
GBPUSD
A second day of higher closes has seen the pair follow through to the upside in early trading today but as long as the new recovery remains contained by the 1.9598 level, its April 15'08 low, GBP should head lower again towards the 1.9360/35 area, marking its 2008 lows and then the 1.9180 level, its Mar 04'07 low. Weekly momentum indicators remain suggestive of further strength. On the upside, clearing the 1.9598 level should propel the pair higher aiming at the 1.9727/19 area, its Mar 05'08/April 01'08 lows initially and next the 1.9963/ 2.0026 levels, its Feb 27'08/April 21 & 28'08 highs. Further gains could trigger upmove towards the 2.0191 level, its Mar 27'08 high and ultimately its Mar 14'08 high at 2.0396.All in all, downside bearishness remains in place though a nearer term corrective recovery is now
| Support |
Comments |
| 1.9360/35 |
2008 lows. |
| 1.9180 |
Mar 04'07 low |
| 1.8902 |
Weekly 200 Ema |
| Resistance |
Comments |
| 1.9598 |
April 15'08 low |
| 1.9674/53 |
April 25'08 low/Aug 17'07 high |
| 1.9727/19 |
Mar 05'08/April 01'08 lows |
| 1.9963/2.0026 |
Feb 27'08/April 21 & 28'08 highs |
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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