Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Sep 04 08 14:34 GMT |

EURUSD: Continues To Print Lower Prices, Maintains Its Bearish Broader Bias.

EURUSD: EUR weakened further lower Wednesday testing a low of 1.4386 before recovering to close higher at 1.4515.Although the formation of a hammer candle (reversal signal) on the back of the said intra day recovery is now in place and the pair now holds above its LT rising trendline suggesting nearer term corrective strength, broader bias remains to the downside as long as the 1.4967/51 zone (its range highs from Nov'07 and Jan'08/.618 Ret) remains unbroken. Immediate resistance levels are seen at the 1.4571 level, its Aug 26'08 low and its Aug 19'08 low at 1.4630.Above here will open up risks towards the 1.4811 level, marking its Aug 28'08 high with a break through there setting up the pair for a run at its Aug 21'08 high at 1.4909.However,breaking and closing back below its LT rising trendline could yield further weakness towards its Sept 03'08/Jan 22'08 lows at 1.4386/64 with a trade below there putting the pair in position to target the 1.4309 level, its Dec'07 high and then its Oct'07 low at 1.4015.On thw whole,higher time frame momentum indicators continue to trend lower suggesting further downside losses.

Support Comments
1.4386/64 Sept 03'08/Jan 22'08 low
1.4309 Dec'07 low
1.4015 Oct'07 low

Resistance Comments
1.4595/65 LT Rising trendline/Aug 26'08 low/Range Break Price Target
1.4630 Aug 19'08 low
1.4728 .786 Ret
1.4811 August 12'08 low
GBPUSD: Higher Time Frame Charts Suggest Weakness Towards April'06 Low,

GBPUSD: Following continued weakness since breaking below the 1.9337 low,GBP now looks to head towards its long term support at 1.7251(April'06 low) though nearby support is located at the 1.7623 level, its Mar'06 high while distant one resides at the 1.7129 level, its Dec'05 low. Weekly and monthly studies remain supportive of this view. If a recovery higher is triggered though not yet seen, GBP should trade higher towards its Jan'06 high at 1.7935 and the 1.8090 level, its Jun'06 low. Further strength should push it towards the 1.8176 level, its July 16'06 low. This recovery scenario if it occurs is corrective of the pair's recent decline. All in all, GBP continues to be pressured to the downside leaving it vulnerable to additional weakness.

Support Comments
1.7623 Mar'06 high
1.7251 April'06 low
1.7129 Dec'05 low
1.7049 Nov'05 low

Resistance Comments
1.7935 Jan'06 high
1.8090 Jun'06 low
1.8176 July 16'06 low
1.8283/74 Aug 27'08 low/Descending triangle breakout price target

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