Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Nov 20 08 14:38 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Price Failure Turns Attention To The 1.2330 Level. GBPUISD: Print Of A Higher Level Rejection Candle Portends A Retest Of The 1.4558 Level. EURUSD EUR traded back into its symmetrical triangle Wednesday to close the session at 1.2503 after an intra day upmove pushed it to as high as 1.2814.The pair's YTD low at 1.2330 is now being targeted. We maintain that the pair's medium term outlook remains lower and the resolution of its current range should be to the downside with a continuation of its overall weakness started at the 1.6038.Support in such a case are located at the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) and the 1.1827 level, its Mar'06 low.However,if a return back above its Wednesday high at 1.2814 is seen, EUR should head further down towards its Nov 13'08 high ahead of the 1.3058/05 level, its Oct 23'06 high/.618 Ret (0.8231-1.6038 rally, monthly chart) and then the 1.3259/98 level, its Oct 30'08 high/Oct 10'08 low. Break of the latter will serve as a trigger for directional bias out of its current range though not envisaged. On the whole, pressure continues to build on the 1.2330 level and possibly even lower. Support Comments 1.2484 Oct'06 low 1.2334/24 Jan/April'06 highs 1.1827 Mar'06 low 1.1640 Nov'05 low Resistance Comment 1.2866 Jan'07 low 1.3058 .618 Ret (0.8231-1.6038 rally, monthly chart) 1.3259 Oct 10'08 GBPUSD Backing off its Oct 24'08 low at 1.5265 Thursday and declining in early morning trading today now suggest a return back to its YTD low at 1.4558 is now shaping up. This is coming on the back of a failure at the 1.5250 level and subsequent weakness recorded on Thursday. The above scenario remains consistent with the pair's broader medium to long term bearish bias. Invalidating its immediate support at the 1.4837 level, its Oct 2001 high will expose two other supports at the 1.4558 level and the 1.4045 level, its Jan'02 low. Alternatively, a revisit and close above the 1.5000 and its Nov 19'08 high/Oct 24'08 low at 1.5250/65 will be required to resume its corrective recovery started at the 1.4558 level.All in all,GBP maintains in an overall bearish structure suggesting that its current price action remains corrective. Support Comments 1.4837 Oct,2001 high 1.4045 Jan'02 low 1.3682 Jun'01 low Resistance Comments 1.5000 Psycho Leve 1.5219 Oct'02 low 1.5250/65 Nov 19'08 high/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