Daily Technical Strategist
Today's Focus: EURUSD & GBPUSD
- EURUSD: EUR Keeps Focus On Its Year-To-Date Low.
- GBPUSD: Shooting Star Triggers Sell Off..
EURUSD
Price acceleration was seen through the 1.3682/66 zone, its April'07/Dec'04 highs on Wednesday pushing the pair to a low of 1.3424 before closing at 1.3436. This is coming on the back of a collapse ahead of the 1.3786 level, its Oct 09'08 high as well as the formation of a shooting star candle on Tuesday. With its recent nearer term corrective recovery halted and price action turned lower, the 1.3312/1.3264 zone, its .618 Ret (1.1640-1.6038 rally)/Jun'07 low will now be challenged at first as it prepares to retest its YTD low at 1.3259.A clearance of here will resume the pair's medium term decline towards its .618 Ret (0.8231-1.6038 rally, monthly chart) at 1.3058 followed by the 1.2980 level, its Jun'06 high and beyond. The daily RSI has turned lower supporting this view. In the meantime, recovery if seen should target the 1.3682/66 level, its April'07/Dec'04 highs firstly before the 1.3786 level and then the 1.3852/82 zone, its Sept 11'08 low/July'07 high. On the whole, EUR looks to resume its medium term weakness started at the 1.6038 level in mid-July'08.
| 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 |
| 1.2980 |
Jun'06 high |
| Resistance |
Comment |
| 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
GBP sold off sharply on the back of a formation of the shooting star candle pattern referenced in our Wednesday analysis. This development has now turned risk lower targeting the 1.7049 level, its Nov'05 low initially and subsequently the 1.6857 level, its June'03 high with a loss of there turning attention to the 1.6786 level, its Oct 10'08 low, Below the latter will put the pair in position to resume its medium/longer decline triggered off the 2.1161 towards the 1.6576 level, its Jan, 03 high. Upside objectives are seen at its April'06 low at 1.7251 and the 1.7447 level, its YTD high. Others reside at 1.7735 level, its Sept 16'08 low and the 1.7840 level, its Oct 03'08 high.All in all, GBP is now poised to push towards 1.6786 level having sold off on the formation of a shooting star candle pattern on Wednesday.
| Support |
Comments |
| 1.7049 |
Nov'05 low |
| 1.6857 |
June'03 high |
| 1.6786 |
Oct 10'08 low |
| 1.6576 |
Jan, 03 high |
| Resistance |
Comments |
| 1.7251 |
April'06 low |
| 1.7447 |
YTD high |
| 1.7735 |
Sept 16'08 low |
| 1.7840 |
Oct 03'08 high |
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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