Daily Technical Strategist
Today's Focus: EURUSD & GBPUSD
- EURUSD: While The 1.3882 & 1.3666 Levels Hold, Momentum Triggered At The 1.4867 Level Is Set To Continue.
- GBPUSD: GBP Closes Below The 1.7447 Level, Resumes Its Medium Term Declines
EURUSD
Having opened the week sharply lower trading to a low of 1.3443 on Monday, EUR is now expected to head further lower in continuation of its medium term downtrend triggered yesterday. Violation of a key support level at the 1.3682/66 zone, its April'07/Dec'04 highs has now pave the way for additional decline towards its Dec'04 high/August'07 low at 1.3366/61.Below there will bring EUR towards the 1.3312/1.3264 zone, its .618 Ret(1.1640- 1.6038 rally)/Jun'07 low. Higher timeframe charts are in alignment with this scenario.However, if a recovery from its current decline is activated, the 1.3682/66 zone will be targeted initially ahead of the 1.3852/82 zone, Sept 11'08 low/July'07 high. These levels are expected to cap such upside recovery if seen before the pair turns lower again. Beyond there though not envisaged at the present price should see EUR aiming at the 1.4015 level, its Oct'07 low and then its Sept 16'08 low at 1.4073 low. Our medium term targets residing at the 1.3366/61 and 1.3264 levels are being eyed following Monday declines. On the whole, downside momentum remains intact in the medium term suggesting that further losses in the days and weeks ahead could be seen.
| Support |
Comments |
| 1.3366/61 |
Dec'04 high/August'07 low |
| 1.3312/1.3264 |
.618 Ret(1.1640-1.6038 rally)/Jun'07 low |
| 1.298 |
Jun'06 high |
| Resistance |
Comments |
| 1.3682/66 |
April'07/Dec'04 highs |
| 1.3852/82 |
Sept 11'08 low/July'07 high |
| 1.4015 |
Oct'07 low |
| 1.4073 |
Sept 16'08 low |
GBPUSD
While a rise off Monday low at 1.7336 was seen in early trading today, having broken and closed below the 1.7447 level at the end of Monday session, risk is now tilted to the downside for a continued weakness towards the mentioned low with a loss of there expected to trigger further losses towards its April'06 low at 1.7251 followed by its Nov'05 low at 1.7049 and then its June'03 high standing at 1.6857.Alternatively,if its morning strength were to be sustained, the pair should target the 1.7735 level, its Sept 16'08 low at first where a break higher will set the pair up for a move towards the 1.7976 level, its Sept 08'08 high and the 1.8128 level, its Sept 15'08 followed by the 1.8482 level, its .382 Ret. All in all, while its broader bias remains to the downside, risk is seen below the 1.7447 and even lower.
| Support |
Comments |
| 1.7447 |
YTD high |
| 1.7251 |
April'06 low |
| 1.7049 |
Nov'05 low |
| 1.6857 June'03 high |
|
| Resistance |
Comments |
| 1.7735 |
Sept 16'08 low |
| 1.7976 |
Sept 08'08 high |
| 1.8123 |
Sept 15'08 high |
| 1.8307 |
Sept 25'08 low |
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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