Daily Technical Strategist
Today's Focus: EURUSD & GBPUSD
- EURUSD: Develops Symmetrical Triangle Within Its Broader Sideways Range.
- GBPUSD: Begins Nearer Term Recovery Of Its Recent Declines, Eyes A Retest Of The 1.5265 Level..
EURUSD
Having maintained a trading range between the 1.2330 level, its YTD low, and the 1.3259/98 levels, its Oct 30'08 high/Oct 10'08 low ,a symmetrical triangle has now formed and a break either way within the mentioned range is now envisaged. Our overall bias remains for the pair to break below its recent medium term low at 1.2330 from its present consolidation activities exposing the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) and the 1.1827 level, its Mar'06 low. Its daily studies are pointing lower supporting this scenario. Upside targets are located at the 1.3058/05 level, its Oct 23'06 high/.618 Ret (0.8231-1.6038 rally, monthly chart) ahead of the 1.3259/98 level, its Oct 30'08 high/Oct 10'08 low and then the 1.3666 level, its Dec'04 high. On the whole, we maintain our downside resumption view of its medium term weakness from the 1.6038 level.
| Support |
Comments |
| 1.2484 |
Oct'06 low |
| 1.2334/24 |
Jan/April'06 highs |
| 1.1827 |
Mar'06 low |
| 1.1640 |
Nov'05 low |
| Resistance |
Comment |
| 1.2866 |
Jan'07 low |
| 1.3058 |
.618 Ret (0.8231-1.6038 rally, monthly chart) |
| 1.3259 |
Oct 10'08 |
GBPUSD
Reversal of intra day losses Tuesday ahead of the long legged doji-like candle(reversal signal) highlighted in our previous analyses now suggests corrective strength towards its Oct 24'08 low at 1.5265 may occur.This is coming on the back of its recent decline off the 1.6673 level, its Oct 30'08 high. The pair's focus remains lower as any recovery at this stage is corrective of its medium to long term downtrend started at the 2.1161.The 1.5265 level if seen is expected to contain the present correction and turn the pair lower gain. In such a case, the 1.4837 level, its Oct 2001 high will be targeted ahead of its new year low at 1.4558 accompanied by the 1.4045 level, its Jan'02 low. All in all,GBP continues to maintain its broader medium to long term bearish tone
| Support |
Comments |
| 1.4837 |
Oct,2001 high |
| 1.4045 |
Jan'02 low |
| 1.3682 |
Jun'01 low |
| Resistance |
Comments |
| 1.5219 |
Oct'02 low |
| 1.5265 |
Oct 24'08 low |
| 1.5461/71 |
April'03 low/Aug'03 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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