Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Oct 10 08 10:25 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Failure Ahead of The 1.3852/82 zone Suggests A Retest of The 1.3443 Level.–EUR looks to head to the downside again as its attempt on the upside was halted ahead of the 1.3852/82 zone, its Sept 11'08 low/July'07 high opening up risk towards its YTD low at 1.3443… GBPUSD: GBP Clears The 1.7049 Level, Triggers Long Term Downtrend- As highlighted in our Thursday analysis, with a loss of the 1.7049 level achieved and its June'03 high at 1.6857 being challenged in early morning trading today, GBP's longer term downside weakness has been triggered EURUSD EUR looks to head to the downside again as its attempt on the upside was halted ahead of the 1.3852/82 zone, its Sept 11'08 low/July'07 high opening up risk towards its YTD low at 1.3443.Presence of three shooting star candles remains supportive of the said retest which is also in line with its medium term downtrend. Invalidating the latter will push the pair lower aiming at its Dec'04 high/August'07 low at 1.3366/61 where a break could see EUR weaken further towards the 1.3312/1.3264 zone, its .618 Ret (1.1640-1.6038 rally)/Jun'07 low. On the upside, the 1.3682/66 zone, its April'07/Dec'04 highs will serve as the first target ahead of the 1.3852/82 zone followed by its Oct'07 low at 1.4015 and subsequently its Sept 16'08 low at 1.4073.The daily studies are oversold and a positive divergence is in place supporting a temporary bounce case. On the whole, the pair's broader bias remains to the downside with any corrective gains seen as short term. Support Comments 1.3366/61 Dec'04 high/August'07 low 1.3312/1.3264 .618 Ret (1.1640-1.6038 rally)/Jun'07 low 1.298 Jun'06 high Resistance Comments 1.3682/66 April'07/Dec'04 highs 1.3852/82 Sept 11'08 low/July'07 high 1.4015 Oct'07 low 1.4073 Sept 16'08 low GBPUSD GBP maintained its medium term downtrend Thursday breaking through and closing below its Nov'05 low at 1.7049.As highlighted in our Thursday analysis, with a loss of the 1.7049 level achieved and its June'03 high at 1.6857 being challenged in early morning trading today, GBP's longer term downside weakness has been triggered. In such a case, its .618 Ret (1.3682-2.1161 rally, monthly chart) at 1.6552 is seen as the next downside target on a convincing loss of the 1.6857 level, its June'03 high. Below there will favour a move towards the 1.6175 level, representing its Mar'03 high. Resistance comes in at the 1.7049 level ahead of its April'06 low at 1.7251 and then the 1.7447 level, its Sept 11'08.All in all, having eroded the 1.7049 level,GBP is poised to head further lower beyond the 1.6857 Support Comments 1.6857 June’03 high 1.6552 .618 Ret (1.3682-2.1161 rally, monthly chart) 1.6175 Mar’03 high Resistance Comments 1.7049 Nov’05 low 1.7251 April’06 low 1.7447 YTD high 1.7735 Sept 16’08 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