Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Nov 14 08 14:23 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Turns Off Ahead Of The 1.2330 Level, Back Into Its Sideways Range. GBPUSD: Prints A Reversal Candle After Testing A Low Of 1.4558. EURUSD Having turned sharply higher ahead of the 1.2330 level, its YTD low, EUR is now back into its 1.3298 and 1.2330 sideways trading range after resolving to the downside from its 4 Hourly triangle on Tuesday. Break either way is needed to create meaningful directional moves. However, we still see the pair heading lower out of the said range based on its bearish medium term trend. Resistance on a follow-through higher will expose the 1.3058/05 level, its Oct 23'06 high/.618 Ret (0.8231-1.6038 rally, monthly chart) before the 1.3259/98 level, its Oct 30'08 high/Oct 10'08 low and next the 1.3666 level, its Dec'04 high.Alternatively,support levels rest at the 1.2728 level, its Oct 22'08 low initially and later the 1.2330 level with a break of there taking price towards the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) and the 1.1827 level, its Mar'06 low. On the whole, with reversal ahead of the 1.2330 level seen, EUR should continue its consolidative price activities between the 1.2330 and the 1.3298 levels. Support Comments 1.2728 Oct 22'08 low 1.2484 Oct'06 low 1.2334/24 Jan/April'06 highs 1.1827 Mar'06 low Resistance Comment 1.2866 Jan'07 low 1.3058/05 Oct 23'06 high/.618 Ret (0.8231-1.6038 rally, monthly chart) 1.3259/98 Oct 30'08 high/Oct 10'08 low GBPUSD A long legged doji-like reversal candle has halted the pair's decline off the 1.6673 level, its Oct 30'08 high and taken back its intra day losses on Thursday. This price action is suggestive of a temporary bottom and if that materializes, higher prices may be seen targeting its Oct 24'08 low at 1.5265 where a cap is expected to turn the pair lower again. Downside targets are located at the 1.4837 level, its Oct 2001 high with a loss of there extending prices towards the 1.4045 level, its Jan'02 low. All in all,the primary trend remains lower suggesting that any recovery higher seen is corrective. Support Comments 1.4837 Oct,2001 high 1.4045 Jan'02 low 1.3682 Jun'01 low Resistance Comments 1.5000 Psycho level 1.5219 Oct'02 low 1.5265 Oct 24'08 low 1.5461/71 April'03 low/Aug'03 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