Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Aug 01 08 10:49 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Consolidation Remains In Force GBPUSD: Major Emas and Broken Rising Channel Base Turn Off GBP. EURUSD EUR saw its effort at heading higher halted on Thursday by a confluence of resistance levels coming in at the 1.5694/96 zone, representing its daily 50 ema/broken channel base. Consolidation remains a factor and with yesterday's marginal gains wiped out in early morning trading today, risk has now turned lower exposing its July 24'08/July 30'08 lows at 1.5527/21 at first and then the 1.5459/67 zone, its .786 Ret/Jun 23'08 lows. Decisively penetrating and holding below there will put further downside pressure on its May/June'08 lows at 1.5302/1.5283.Weekly studies which have turned lower remain suggestive of this view playing out though oversold condition on the daily timeframe may cause consolidation to recovery. Upside targets are located at its July 28'08 high at 1.5766 ahead of the 1.5842 level, its Jun 09'08 high with the next two upside objective residing at the 1.5945 level, its July 22'08 high and the 1.6018/37 zone, its April 22'08/YTD highs. On the whole, although GBP's medium and longer term bullish structure remain in place, its potential third week of downside closes now shaping up keeps risk to the downside in the short term. Support Comments 1.5527/21 July 24'08/July 30'08 lows 1.5459/67 .786 Ret/Jun 23'08 low 1.5302/1.5283 May/June'08 lows Resistance Comments 1.5627 July 24'08 low 1.5668/81 .50 Ret/back of its invalidated LT trendline 1.5842 Jun 09'08 high 1.5945 July 22'08 highs GBPUSD Although gains were seen and a positive close was registered on Thursday, attempts at breaking and holding back within its daily eroded rising channel failed causing the pair to remain below the said key resistance levels. The pair was seen trading below its .50 Ret(1.9407-2.0155 rally) at 1.9782 in early morning trading today suggesting that a hold on to those gains should see GBP targeting further downside losses towards its .618 Ret at 1.9697 ahead of the 1.9643 level, its July 07'08 low and then its June 13'08 at 1.9407.Daily RSI remains supportive of this view. On the other hand, resistance runs through the 1.9800/1.9790 zone, its Jun 09 & 20'08 highs and the 1.9850/42,its May 23'08 high/Daily 200 ema with a break through the latter triggering upside gains towards the 2.0075 level, its July 22'08 high followed by the 2.0155 high, its July 15'08 high with scope for extension towards the 2.0191 level, its Mar 27'08 high. All in all, while the pair continues to trade and hold below the mentioned key resistance levels, risk of lower prices can not be ruled out. Support Comments 1.9697 .618 Ret 1.9643 July 07'08 low 1.9407 June 13'08 at 1.9407 Resistance Comments 1.9800/1.9790 Jun 09 & 20'08 highs 1.9850/42 May 23'08 high/Daily 200 ema 2.0075 July 22'08 high 2.0155 July 15 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