Daily Technical Strategist

Today's Focus: EURUSD & GBPUSD

• EURUSD: Clears Its Dec'07 Low, Turns Attention To The 1.4014 Level
• GBPUSD: Persistent Weakness Continues To Take Hold On GBP

EURUSD

Weakness through its Wednesday low at 1.4386 saw EUR break and close below another strong resistance at the 1.4310 level(its Dec'07 high) opening the door for lower prices towards a key support residing at the 1.4015 level, its Oct'07 low.If a continued decline persists, its July'07 high at 1.3852 will be targeted. Weekly and monthly studies are trending lower suggesting further declines could be seen. On the upside, its invalidated support at 1.4310 should now reverse roles and provide resistance. However, if a corrective recovery materializes through there, its Jan 22'08/Sept 03'08 lows at 1.4364/86 will be aimed at with additional strength if seen paving the way for a push towards the 1.4595/65 zone, its broken LT rising trendline/Aug 26'08 low/broken range break price target. On the whole, with a fresh phase of weakness triggered, EUR is now poised to head towards its key support resting at 1.4015 and possibly lower

GBPUSD

GBP is on its way to a seventh-weekly lower closes having weakened for a fourth-day in a row since the beginning of week. This is coming on the back of its broader medium term decline off the 2.1160 high followed with a failed nearer term recovery the previous week. Downside objectives are located at the 1.7623 level, its Mar'06 high and then at the 1.7251 level (April'06 low) with a distant support located at the 1.7129 level, its Dec'05 low. Higher time frame momentum remains supportive of this view. On any recovery from here, GBP should move towards its Jan'06 high at 1.7935 and the 1.8090 level, its Jun'06 low with a break through there pushing the pair towards the 1.8176 level, its July 16'06 low. All in all, medium term downtrend remains in good shape with any strength seen corrective.

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