Weekly Technical Strategist

Today's Focus: EURUSD & GBPUSD

• EURUSD :Resumption Of Short Term Uptrend Highlights The 1.4363 Level
• GBPUSD: Clears The 1.5724 Level, Targets Further higher prices

EURUSD

With its key resistance at its Mar 19'09 high at 1.3738 decisively violated and resumption of its short uptrend triggered, risks have now turned to its strong overhead resistance located at the 1.4363 level, its Dec 29'09 high. But before that occurs, its psycho level resting at the 1.4000 will have to initially give way to activate that. Further out, upside objectives are seen at the 1.4719 level, its Dec 18'09 high and then the 1.4867 level. Its weekly momentum indicators are pointing higher suggesting further strength. The immediate risk to this analysis will be how the price reacts to the 1.4000 level, its big psycho level. On the downside, its psycho supports seen at the 1.3900 and 1.3800 levels will be targeted at first followed by its Mar 19'09 high at 1.3738 where a reversal of roles is expected to turn the pair back up again. However, if a loss of there is seen, EUR could be seen aiming at the 1.3424 level, its May 18'09 low. On the whole, having broken and closed above its key resistance, potential for additional upside is now seen.

Directional Bias:
Nearer Term - Bullish
Short Term - Bullish
Medium Term - Bearish

Performance in %:Past Week: +3.72%
Past Month: -0.11%
Past Quarter: -5.10%
Year To Date:+0.19%

Weekly Range:
High -1.4051Low -1.3424

GBPUSD

Having decisively broken and closed above its two key resistance levels at the 1.5374 level, its Jan 08'09 high and the 1.5724 level, its Dec 17'08 high, GBP has triggered the continuation of its ST uptrend activated from the 1.3655 level, its Mar 11'09 low. Having said that, GBP is experiencing its strongest weekly rally since beginning its bottoming process in Jan'09 which now calls for further upside gains towards the 1.6000 level, representing its big psycho level with a cut through there driving the pair towards the 1.6399 level, its Nov 03'08 high ahead of the 1.6673 level, its Oct 30'08 high. Its weekly stochastics and RSI remain bullish and pointing higher suggesting further upside. Pullbacks from the current price levels will initially target the 1.5724 level, its Dec 17'08 high with a loss of there pushing the pair towards the 1.5374 level, its Jan 08'09 high. Either the former or the latter is expected to reverse roles and provide support thereby turning the pair higher again. All in all, we maintain our upside bias with its ST uptrend now triggered.

Directional Bias:
Nearer Term -Bullish
Short Term -Bullish
Medium Term -Bearish

Performance in %:
Past Week:: +4.96%
past Month: +2.89%
Past Quarter: -1.86%
Year To Date:: +8.88%

Weekly Range:
High -1.5945
Low -1.5117

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