Daily Technical Strategist

Today's Focus: EURUSD & GBPUSD

• EURUSD: Momentum Subsides, Nearer Term Corrective Recovery Could Shaping Up
• GBPUSD: Bounces Off Intra Day Low, Trades Above The 1.7447 Level

EURUSD

EUR closed higher Tuesday after hitting an intra day high of 1.3743 off its recent low at 1.3443. This development is coming on the back of the pair's collapse and subsequent decline through its key support at the 1.3852/82 zone, its Sept 11'08 low/July'07 high to print its lowest price since Aug'07.That leaves both its short and medium term trend to the downside with any strength seen as corrective. Any nearer term corrective upside will be met with a strong support turned resistance at the 1.3682/66 zone, its April'07/Dec'04 highs with further gains aiming at 1.3682/66 zone, its April'07/Dec'04 highs and then the 1.3852/82 levels. This area should reverse roles and provide resistance before turning the pair lower again. Immediate support runs through the 1.3443 level and its Dec'04 high/August'07 low at 1.3366/61 with a break there targeting the 1.3312/1.3264 zone, its .618 Ret (1.1640-1.6038 rally)/Jun'07 low. On the whole, weakness in momentum should keep the pair vulnerable to corrective recovery in the near term while retaining its bearish broader bias.

Support Comments
1.3682/66 April'07/Dec'04 highs
1.3366/61 Dec'04 high/August'07 low
1.3312/1.3264 .618 Ret(1.1640-1.6038 rally)/Jun'07 low
1.2980 Jun'06 high

Resistance Comments
1.3852/82 Sept 11'08 low/July'07 high
1.4015 Oct'07 low
1.4073 Sept 16'08 low

GBPUSD

After an intra day weakness saw the pair decline to its lowest price since late April'06,recovery off that low followed pushing GBP higher to close the session at 1.7464.It was seen trading above the 1.7447 level, its Sept 11'08 and holding above that level will suggest further corrective upside gains could be envisaged towards the 1.7735 level, its Sept 16'08 low with a loss of there extending price towards the 1.7976 level, its Sept 08'08 high and next the 1.8128 level, its Sept 15'08.Alternatively,while this view remains corrective of its decline from the 1.8669 level,breaking back below the 1.7318 level will favour the resumption of its medium term downtrend towards its April'06 low at 1.7251 followed by its Nov'05 low at 1.7049 before its June'03 high standing at 1.6857.All in all, the pair's medium term downtrend remains intact and should turn lower after ending its present recovery effort.

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