Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Sep 11 08 12:10 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Loss Of The 1.4015 Level Opens Up Risk Towards The 1.3852 Low GBPUSD: New Low To Trigger Declines Towards 1.7251. EURUSD EUR sold off sharply lower Wednesday breaking below its strong support at the 1.4015 level, its Oct'07 low and confirming further bearish momentum. This development has now opened up downside risk towards another key support cutting in at the 1.3852 level, its July'07 low where a break could bring additional downside pressure aiming at the 1.3361 level, its Aug'07 low. Decisively penetrating and negating the latter will set the stage for further declines towards the 1.3264 level, its Jun'07.The weekly and monthly studies continue to back this view. If corrective recovery is seen at this stage, its eroded support should reverse roles and provide resistance with further strength through there if seen paving the way for further upmove towards the 1.4197 level, its Sept 05'08 low ahead of the 1.4366/10 zone, its Jan'08/Dec'07 lows followed by another resistance residing at its Sept 08'08 high at 1.4429.On the whole, persistent downside weakness has left the pair targeting additional support at 1.3852 and a distant one at 1.3361. Support Comments 1.3852 July'07 high 1.3361 Aug'07 high 1.3264 July'07 low Resistance Comment 1.4015 Oct'07 low 1.4197 Sept 05'08 low 1.4366/10 Jan'08/Dec'07 lows 1.4429 Sept 08'08 GBPUSD Having weakened on Wednesday and seen declining to a 29-month low at 1.7447 in early morning trading today, cleanly breaking and closing below its Sept 08'08 low at 1.7471 will open the door for further weakness towards the 1.7251 level, its April'06 low. A turn below there should put the pair in position to head towards the 1.7130 level, its Dec'05 low and then its Nov'05 low at 1.7067.The weekly and monthly stochastics remain supportive of this scenario. On the upside, resistance levels are located at its Sept 05'08 low at 1.7535 and its Jan'06/Sept 08'08 highs at 1.7935/76 before the 1.8090 level, its Jun'06 low. All in all, bearish momentum remains entrenched in the pair and the vulnerability of further downside losses continues to mount. 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