Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Dec 02 08 13:11 GMT |

Today's Focus: EURUSD & USDJPY EURUSD: EUR Set To Retarget The 1.23330 Level. USDJPY: Declines Decisively Through the 93.56 level.. EURUSD While the pair continues to maintain its broader range between the 1.2330 and the 1.3298 levels, its recovery started at the 1.2423 level, its Nov 20'08 low has reversed pushing it back below the 1.2814 level, its Nov 19'08 high to close lower at 1.2691 on Monday. As long as the pair continues to maintain its present downside tone, a return to its YTD low at 1.2330 is likely with a turn below there triggering the resumption its medium term declines towards the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) and later the 1.1827 level, its Mar'06 low . Resistance now runs through the 1.2814 level, its Nov 19'08 high ahead of its Nov 25 & 05'08 highs at 1.3081/1.3116 and subsequently the 1.3298 level. We expect the pair to continue to face downside pressure especially now that price action and daily studies are pointing lower. On the whole, failure at higher level prices has increased the odds of a return to the 1.2330 level with a break through there envisaged. Support Comments 1.2484 Oct'06 low 1.2330/24 Oct 28'08 low/Jan/April'06 highs 1.2134 .50 Ret (0.8231-1.6038 rally) Resistance Comment 1.2814 Nov 19'08 high 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 USDJPY traded sharply lower Monday breaking and closing below its strong support at the 93.56 level ,its Nov 20'08 low. We continue to view this break leading to further declines towards its YTD low at 90.91 with a loss of there setting the pair up for lower prices targeting the 86.52 level, its 1.618 Fib Ext and the 79.70 level, its April'1995 low. Daily momentum indicators are bearish and pointing lower suggesting further declines. On the upside, initial resistance resides at the 93.56 level just eroded followed by the 96.35/95.75 level and next its Nov 10'08 high at 99.48.Another key resistance lies at the 96.35/95.75 level and its Nov 10'08 high at 99.48 ahead of the 100.00/55 area, its psycho level/Nov 04'08 high. All in all, the pair's overall outlook remains lower in the medium term with the 90.91 support coming in as the main target. Support Comments 93.56 Nov 20'08 low 90.91 YTD low 86.52 1.618 Fib Ext 79.70 April'1995 low Resistance Comments 96.35/95.75 Oct 31'08/Mar'08 lows 99.48 Nov 10'08 high 100.00/55 Psycho level/Nov 04'08 102.42 Oct 20'08 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