Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Aug 29 08 12:02 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Nearer Term Corrective Recovery Continues To Shape Up. GBPUSD: Further Downside Momentum Continues To Be Seen EURUSD Although EUR reversed its intra day upside gains to close lower at 1.4703 on Thursday, as long as its LT rising trendline continues to provide support and its daily stochastics is trending higher, odds are for corrective nearer term recovery off the 1.4570 level (Aug 26'08 low) to be seen. In such a case, the 1.4814 level, its August 12'08 low will be targeted before the 1.4967/51 zone (its range highs from Nov'07 and Jan'08/.618 Ret) and then the 1.5304/1.5285 zone (May/Jun'08 lows). These last two key levels are expected to turn the pair lower and resume its recent weakness. On the downside, breaking back below the 1.4728 level, its .786 Ret (1.4310-1.6038 rally), its August 19'08 low at 1.4630 and its LT rising trendline currently at 1.4595 is required to annul our nearer term upside recovery view. Below the latter will set the stage for a decline towards its Aug 26'08 low at 1.4570 with a loss of there opening the door for further weakness towards the 1.4364 level, its Jan 22'08 low. On the whole, while the pair continues to maintain its bearish medium term structure, corrective strength in the nearer term could be seen. Support Comments 1.4728 .786 Ret 1.4630 Aug 19'08 low 1.4595/65 LT Rising trendline/Range Break Price Target 1.4364 Jan 22'08 low Resistance Comment 1.4814 August 12'08 low 1.4967/55 Nov'07 and Jan'08 highs 1.5304/1.5285 May/Jun'08 lows GBPUSD GBP weakened for a fourth day in a row since breaking below its range,printing a new two-year plus low at 1.8238 on Thursday. It is now attacking its descending triangle breakout price target at 1.8274 where a convincing break and close below it should clear the way for additional decline towards the 1.8176 level, its July 16'06 low and next the 1.8090 level, its Jun'06 low. Longer term time frame charts remain supportive of this view. On the upside, if strength is seen at the current price level, GBP should head towards the 1.8398 level (Aug 28'08 high) initially with the next upside located at the .8510/17 levels, its August 15'08/Oct 08'06 lows followed by the 1.8745 level, its .618 Ret (1.7250-2.1160 rally) with price extension if seen aiming at the 1.9009 level, its weekly 200 ema.All in all,GBP's medium term downside remains intact and its vulnerability to further losses can not be ruled out. Support Comments 1.8283/74 Aug 27'08 low/Descending triangle breakout price target 1.8176 July 16'06 low 1.8090 Jun'06 low Resistance Comments 1.8398 Aug 28'08 high 1.8510/17 Oct 08'06 low/August 15'08 low. 1.8745 .618 Ret (1.7250-2.1160 rally) 1.9009 Weekly 200 ema 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