Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Jul 23 08 10:01 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: EUR Seen Below Rising Channel,May Weaken Further. GBPUSD: GBP Continues To Trade Within Its Rising Channel. EURUSD An unsustained move above its Monday high at 1.5931 saw EUR collapsing and closing below its daily rising channel on Tuesday forming a bullish engulfing candle pattern. This development now leaves the pair targeting lower prices nearer term especially now that its daily studies have turned lower. In such a case, the 1.5714 level, representing its daily 50 ema comes in as the initial downside objective followed by its .50 Ret (1.5302-1.6037 rally)/LT rising trendline at 1.5671/47.This zone is expected to provide strong support if traded while below there should open up downside risk towards the 1.5610 level, its July 07'08 low. Resistance level lies at the 1.5842 level, its Jun 09'08 high ahead of the 1.5945 level, its July 22'08 high with a break of there paving the way for further upside targeting the 1.6018/37 zone, its April 22'08/YTD highs and then the 1.6182 level, its 1.272 Fib Ext.On the whole, the current weakness remains corrective suggesting higher prices should be targeted on completing that setback. Support Comments 1.5671/47 .50 Ret (1.5302-1.6037 rally)/LT rising trendline 1.5714 Daily 50 ema 1.5610 July 07'08 low 1.5467 Jun 23'08 low Resistance Comments 1.5842 Jun 09'08 high 1.5947/45 July 11 & 22'08 highs 1.6018 YTD high 1.6182 1.272 Fib Ext GBPUSD While Tuesday's selloff may suggest a new wave of downside weakness in the nearer term, as long as such declines continue to trade within the pair's rising channel, chances are for additional upside gains to be seen putting its July 02'08 high at 2.0004 as the first resistance and then the 2.0075 level, its July 22'08 high. Invalidating the latter will bring gains towards the 2.0155 high, its July 15'08 high where a decisive break through there should activate moves towards the 2.0191 level, its Mar 27'08 high.Conversely,downside objectives are located at its July 18/21'08 lows and the 1.9850/42 level, its May 23'08 high/daily 200 ema with the 1.9800/1.9790 zone, its Jun 09 & 20'08 highs seen as the next downside target ahead of the 1.9643,its July 07'08 low. The daily stochastics is negative and trending lower implying further losses.All in all, GBP continues to maintain its short term bullish bias while remaining within its rising trendline. Support Comments 1.9850/42 May 23'08 high/Daily 200 ema 1.9800/1.9790 Jun 09 & 20'08 highs 1.9643 July 07'08 low Resistance Comments 2.0004 July 02'08 highs 2.0075 July 22'08 high 2.0155 July 15 high 2.0191 Mar 27'08 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