Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Sep 10 08 12:22 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Overturns Intra Day Gains, Closes Lower GBPUSD: Focus On 1.7251 Level Remains While GBP Trades Below The 1.8000 Level. EURUSD Earlier intraday gainS seen on Tuesday morning were wiped out putting EUR on a second day of negative closes since failing at 1.4427 on Monday. This development continues to buttress the pair's medium term bearish structure suggesting further downside weakness towards its Oct'07 low at 1.4015 with a loss of there extending prices towards its July'07 low at 1.3852.Weekly and monthly momentum indicators are pointing lower supporting this argument. Upside targets are seen at the 1.4366/10 zone, its Jan'08/Dec'07 lows initially followed by its Sept 08'08 high at 1.4429 and then its broken LT rising trendline at 1.4486.On the whole, while any signs of nearer term reversal is yet to be seen,GBP should remain vulnerable to the downside. Support Comments 1.4015 Oct'07 low 1.3852 July'07 high 1.3361 Aug'07 high Resistance Comment 1.4197 Sept 05'08 low 1.4366/10 Jan'08/Dec'07 lows 1.4429 Sept 08'08 1.4486 Broken LT rising trendline GBPUSD Although corrective bounces may be shaping up as the pair's recent low at the 1.7471 level remains untested, while that recovery is capped by the 1.8000 level, resumption of broader weakness through the 1.7471 level and then the 1.7251 level, its April'06 low is expected. Below the latter will put the pair in position to aim at additional lower prices towards the 1.7130 level, its Dec'05 low before its Nov'05 low at 1.7067.Higher time frame studies are bearish and trending lower suggesting further weakness. On the upside, ,its Sept 05'08 high at 1.7744 will come as the immediate resistance where a break and hold above there will set the stage for a move towards its Jan'06/Sept 08'08 highs at 1.7935/76 ahead of the 1.8090 level, its Jun'06 low. All in all, our broader view remains lower though nearer term recovery may be seen. Support Comments 1.7251 April'06 low 1.7130 Dec'05 low 1.7049 Nov'05 low Resistance Comments 1.7744 Sept 05'08 high 1.7935/76 Jan'06 high/Sept 08'08 1.8090 Jun'06 low 1.8176 July 16'06 low 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