Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Jul 22 08 12:25 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Rising Channel Keeps EUR's Short Term Trend To The Upside. GBPUSD: Begins Recovery After Declining Off The 2.0155 High EURUSD Like its GBP counterpart, EUR's short term upside gains continue to be underpinned by a rising channel and its hold above the 1.5842 level, its Jun 09'08 high. Recovery ahead of its channel base saw the pair trading to as high as 1.5932 on Monday leaving GBP targeting the 1.6018/37 zone, its April 22'08/YTD highs where a break could risk price extension towards the 1.6182 level, its 1.272 Fib Ext and then the 1.6380 level, its 1.618 Fib Ext.Both the daily and weekly studies are positive and trending higher suggestive strength. On the downside, the 1.5842 level is expected to provide support on any pullback from the present levels initially with additional support coming in between the 1.5800 level, its channel base and the 1.5718 level, its daily 200 ema.Clearing the latter will push the pair even lower aiming at the 1.5610 level, representing its July 07'08(coinciding with its LT rising trendline).On the whole, with short term bullish bias supported by its rising channel, EUR looks towards retesting the 1.6018/37 zone and possibly higher. Support Comments 1.5842 Jun 09'08 high 1.5800 Rising daily channel base 1.5610 July 07'08/LT rising trendline 1.5467 Jun 23'08 low Resistance Comment 1.5947 July 11'08 1.6018 YTD high 1.6182 1.272 Fib Ext 1.6380 1.618 Fib Ext GBPUSD GBP was seen heading higher in early morning trading today building on its recovery off the 1.9904 low on Friday (last week) following a decline off the 2.0155 high. This price action is likely to continue while the pair continues to trade within its two-month daily rising channel and should push GBP further higher aiming at the 2.0155 high, its July 15'08 high where an invalidation could extend upside gains towards the 2.0191 level, its Mar 27'08 high and ultimately its Mar 14'08 high at 2.0398.Its daily momentum indicators remain supportive of this view. Nearby support now resides at its July 02'08/April 21'08 highs at 2.0004/26 with the next two downside objectives resting at the 1.9905/04 zone, representing its July 18/21'08 lows and the 1.9850 level, its May 23'08 high ahead of the 1.9800/1.9790 zone, its Jun 09 & 20'08 highs. All in all, GBP should continue to focus on higher prices while maintaining above the 2.0000 level and trading within its rising channel. Support Comments 2.0004/26 July 01'08/April 21'08 highs 1.9905/04 July 18/21'08 lows 1.9850 May 23'08 high 1.9800/1.9790 Jun 09 & 20'08 highs Resistance Comments 2.0004/26 July 02'08/April 21'08 highs 2.0155 July 15 high 2.0191 Mar 27'08 2.0396 Mar 14'08 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