Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Oct 15 08 14:36 GMT |


Today's Focus: EURUSD & GBPUSD

* EURUSD: Hesitation Ahead Of 1.3785 And A Close Back Below the 1.3682/66 Area Highlight Lower Prices..
* GBPUSD: Presence Of A Shooting Star Candle Pattern Portends End Of Corrective Recovery.

EURUSD

With EUR failing ahead of the 1.3786 level, its Oct 09'08 high and closing back below the 1.3682/66 zone, its April'07/Dec'04 highs, its corrective bounce started at the 1.3259 may be coming to an end opening risk towards its Dec'04 high/August'07 low at 1.3366/61.Below the 1.3312/1.3264 zone, its .618 Ret (1.1640-1.6038 rally)/Jun'07 low will highlight its YTD low at 1.3259 where a decisive invalidation will activate its medium-longer term losses aiming at its .618 Ret(0.8231-1.6038 rally, monthly chart) at 1.3058.On the other hand, if a return above the 1.3786 and 1.3682/66 levels materialize, then the 1.3852/82 zone, its Sept 11'08 low/July'07 high will be targeted where a cap is expected to turn the pair back down. On the whole, EUR's bearishness is expected to resume on ending the present corrective upmove.
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
1.2980 Jun'06 high
Resistance Comment
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

Although daily momentum indicators continue to suggest we could see further gains, price action at the end of Tuesday trading session now indicates that the recovery started at 12387 could be coming to an end. This case is supported by the fact that the pair reversed its intra day gains Tuesday and later closed lower printing a shooting star candle pattern (top reversal signal).If this scenario plays out and downside weakness is triggered, GBP will target the 1.7447 level, its Sept 11'08 at first and then its April'06 low at 1.7251 ahead of the 1.6857 level, its June'03 high. Clearing that level will put the pair in position to aim at the 1.6786 level, its Oct 10'08 low with a break and close below resuming the pair's longer term weakness.Alternatively,if the top of the shooting star candle were to be cleared, the 1.7735 level, its Sept 16'08 low and the 1.7840 level, its Oct 03'08 high will come in as the next upside objectives. All in all, the pair retains its broader bearish structure even as corrective recovery is seen in the nearer term.
Support Comments
1.7447 YTD high
1.7251 April'06 low
1.7049 Nov'05 low
1.6857 June'03 high
Resistance Comments
1.7735 Sept 16'08 low
1.7840 Oct 03'08 high
1.8669 Sept 25'08 high

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