Daily Technical Strategist

Today's Focus: EURUSD & USDCAD

• EURUSD: Consolidation To Break Out Of The Symmetrical Triangle Seen.
• USDCAD: Looks To Take Out The 1.3018 Level.

EURUSD

While EUR remains trapped in its triangle pattern as well as the 1.2330 and 1.3298 levels, break out of the mentioned triangle continues to dominate the pair's price action. Break of the 1.2330 level is envisaged to be triggered as its present consolidative moves remains corrective of its decline started at the 1.6038 level. Support below the latter runs from the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) to the 1.1827 level, its Mar'06 low while resistance comes in at its Nov 13'08 high at 1.2856 ahead of the 1.3058/05 level, its Oct 23'06 high/.618 Ret (0.8231-1.6038 rally, monthly chart) with a clearance of there setting the stage for a run at the 1.3259/98 level, its Oct 30'08 high/Oct 10'08 low. On the whole, EUR continues to target the 1.2330 level and possibly lower on ending its present corrective price activities.

USDCAD

Our call for a return to the 1.3018 level, representing its YTD high continues to pan out Thursday with further strength pushing the pair through the 1.2379 levels, its Oct 31'08 high and its Nov 14'08 high at 1.2447 to close the session higher at 1.2955.Although USDCAD was seen heading lower in early morning trading today, as long as that weakness remains above its invalidated resistance turned support at the 1.2379/1.2447 area, the pair is likely to test and finally surpass the 1.3018 level resuming its MT uptrend on hold since Oct 28'08 high. The 1.3471 level, its .618 Ret (1.6186-0.9058 decline, monthly chart) will be targeted on such a break. Its daily studies are bullish and trending higher suggesting further strenghth.However, below the 1.2379/1.2447 area should see weakness towards the 1.2121 and then its Nov 10'08 high at 1.1657.All in all, having rallied off the 1.1464 and maintained continued strength, challenge and break of the 1.3018 level is now expected.

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