Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Dec 09 08 14:34 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD:Broader Range Trading Price Activities Continues To Prevail. GBPUSD: Resumption Of Medium To Longer Term Downtrend Expected. EURUSD While the broader consolidation between the 1.2330 and the 1.3298 levels remains in place, price action Monday saw the pair heading higher and challenging its ST declining trendline originating from the 1.3298 high. As we expect the broader range to break either way to trigger meaningful directional moves, nearer term, an erosion of the mentioned declining trendline will suggest higher prices towards its Nov 25 & 05'08 highs at 1.3081/1.3116 at first and then the 1.3298 level, its Oct 30'08 high. Alternatively, the 1.2814 level, its Nov 19'08 high will be targeted on any downside declines with a break and close below there opening the door for further weakness towards the 1.2330 level, its YTD low where a loss will resume its medium term downtrend towards the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) and next the 1.1827 level, its Mar'06 low. On the whole, EUR remains biased to the downside while holding within broader range. Support Comments 1.2814 Nov 19'08 high 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 1.3081/1.3116 Nov 25 & 05'08 highs 1.3298 Oct 30'08 high 1.3531 Oct 20'08 high GBPUSD GBP's hammer candle formation continues to increase odds of further corrective recovery off its Dec 04'08 low at 1.4470. It was seen closing higher Monday suggesting that we might see more upside incursions in the days ahead. If that occur, the 1.5250/65 level followed with the 1.5534 level, its Nov 25'08 high will serve as resistance levels. Its daily stochastics which has just turned higher remains supportive of this view. Support on the downside now begins from the 1.4558 level, its Nov 13'08 low with a break of there paving the way for a down move towards the 1.4470 level ahead of the 1.4045 level, its Jan'02 low. All in all,GBP should head back down towards its recent low at 1.4470 and beyond on ending its present corrective bounce. Support Comments 1.4558 Nov 13'08 low 1.4470 Dec 04'08 low 1.4045 Jan'02 low Resistance Comments 1.4837 Oct 2001 high 1.5250/65 Nov 19'08 high/Oct 24'08 low 1.5885 Nov 10'08 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