Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Sep 24 08 13:45 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: EUR Turns Ahead Of The 1.4951/67 Zone, The 1.4542/71 Zone Seen As Next Downside Objective GBPUSD: Consolidation To Upside Bias Still Seen Nearer Term. EURUSD EUR weakened Tuesday failing to follow through to the upside on its Monday gains and turning lower ahead key resistance coming in at its Nov'07/Feb'08 congestive highs at 1.4951/67 to close at 1.4686.The said failure now sees the pair targeting the 1.4542/71 zone (Aug 26'08/Sept 18'08 lows) with a fall through opening the door for the pair to aim at the 1.4366/10 zone, its Jan'08/Dec'07 lows before its Sept 16 low at 1.4073 and subsequently the 1.4015 level, its Oct'07 low. Decisively penetrating the latter will signal a move towards its July'07/Sept'08 lows at 1.3882/52 and possibly lower.Alternatively, limiting its corrective recovery pullback to the 1.4542/71 zone will suggest another attempt at the upside targeting the 1.4867 level, its Sept 22'08 followed by the 1.4951/67 levels and later its May/Jun'08 lows at 1.5263/85.The daily stochastics continues to support this view though it is just stepping into overbought zone. On the whole, although EUR's corrective recovery off the 1.3882 level is not over yet, another attempt at the upside could be capped by the 1.4951/67 levels before the pair turns lower. Support Comments 1.4542/71 Aug 26'08/Sept 18'08 low 1.4366/10 Jan'08/Dec'07 lows 1.4073 Sept 16 low 1.4015 Oct'07 low Resistance Comment 1.4867 Sept 22'08 1.4951/67 Nov'07/Feb'08 congestive highs 1.5263/85 May/Jun'08 lows GBPUSD GBP unlike its EUR counterpart continues to digest its recent recovery gains off the 1.7447 low Tuesday consolidating and later closing at 1.8571 to print a doji candle (a sign of indecision).The pair requires a close back above the 1.8641 level, its Monday high to resume its corrective recovery towards a stronger resistance at the 1.8795/1.8802 levels, marking its Aug 26'08 high/.50 Ret (2.0157-1.7447 decline) where it is expected to stall and turn lower again. Though not envisaged at this stage, a clearance of the latter will put pressure on the 1.8836 level, its Nov'06 low and then the 1.9122 level, its .618 Ret. While the pair remains below the 1.8795/1.8802 levels, lower level prices cannot be ruled out .This is supportive of its medium term downtrend. In such a case, the 1.8482 level, its .382 Ret should reverse roles and provide support with a snap below there setting the pair up for further decline towards the 1.8277/44 zone, which represents its Sept 17 & 18'08 highs. Other downside objectives are located at the 1.8128 level (Sept 15'08 high) and the 1.7976 level (Sept 08'08 high) and then its YTD low at 1.7447.Overbought daily momentum studies are supportive of this scenario. On the whole, GBP's broader bias (medium term) remains to the downside implying its current nearer term gains is corrective. Support Comments 1.8482 .382 Ret 1.8123 Sept 15'08 high 1.7976 Sept 08'08 high 1.7447 YTD high Resistance Comments 1.8841 Sept 22'08 high 1.8795/1.8802 Aug 21'08 high/.50 Ret (2.0157-1.7447 decline). 1.9122 .618 Ret 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