| Daily Forex Technicals | Written by FXTechstrategy | Dec 11 08 12:13 GMT | | |||||||||||||||||||||||||||||||||||
| Today's Focus: EURUSD & GBPUSD
EUR shot through its ST declining trendline Tuesday and was seen cutting through its Nov 25 & 05'08 highs at 1.3081/1.3116 in early morning trading today. This development has now left the pair targeting its broader range top/Oct 30'08 high at 1.3298 with a break of there though not envisaged on first test aiming at the 1.3531 level, its Oct 20'08 high. Supports are presently located at the 1.3081/1.3116 zone and the 1.2814 level, its Nov 19'08 high followed by the 1.2330 level, its YTD low with a loss of there resuming its medium term downtrend started at 1.6038 towards the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart).On the whole, unless a break and hold above the 1.3298 level occurs, its present range trading environment is expected to continue until any meaningful directional moves is seen either way.
As consolidation to upside strength continues to build up following the pair's sell off from the 1.5534 level, its Nov 25'87 high, a break and close above its minor resistance at the 1.5048 level, its Dec 08'08 high will open up upside risk towards the 1.5534 level. While this level remains unbroken, we expect the pair to turn back down again. In such a case, the 1.4558 level, its Nov 13'08 low and then its recent medium term low at the 1.4470 level will be aimed at with a penetration and negation of the latter putting the next downside objective at the 1.4045 level, its Jan'02 low. The only risk to this view will be a break and hold above the 1.5534 level which should set the pair up for further strength towards the 1.5885 level, its Nov 10'08 high. All in all, the pair may be undergoing corrective price activities but its overall medium to long term bearishness remains in force.
Mohammed Isah 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 | |||||||||||||||||||||||||||||||||||
Thursday, December 11, 2008
Daily Technical Strategist
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