Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Dec 12 08 12:15 GMT |

Today's Focus: EURUSD & USDJPY EURUSD: Loss Of A Band Of Resistance Levels Exposes The 1.3298 Level.. USDJPY: Invalidates The 90.91 Level, Turns Attention To The 86.52 Level. . EURUSD After clearing a band of resistance levels to close above its broader range top/Oct 30'08 high at 1.3298 Thursday, EUR was seen weakening in early morning trading today backing off the 1.3406 high and testing the 1.3259 low.As referenced in our past analysis, in order for meaningful directional moves to be established, a convincing break either way out of its broader range between the 1.3298 and 1.2330 levels is required. Resistance levels above the 1.3298 level are residing at the 1.3531 level, its Oct 20'08 high and the 1.3785 level, its Oct 09'08 high while any corrective downside move from its current upmove will aim at its Nov 25 & 05'08 highs at 1.3081/1.3116 ahead of the 1.2814 level, its Nov 19'08 high.Futher down, additional support lies at the 1.2330 level, its YTD.On the whole, having cleared a layer of resistance levels, EUR should head further higher targeting the 1.3298 level and possibly higher in the days and weeks ahead. Support Comments 1.3081/1.3116 Nov 25 & 05'08 highs 1.2814 Nov 19'08 high 1.2330/24 Oct 28'08 low/Jan/April'06 highs Resistance Comment 1.3298 Oct 30'08 high 1.3531 Oct 20'08 high 1.3785 Oct 09'08 high USDJPY The pair was seen weakening(88.34,lowest price since August'1995)through its YTD low at 90.91 in early morning trading today. This is coming on the back of its consistent weekly declines since hitting a corrective high of 100.55 in early Nov'08.With our call for the loss of the 90.91 level and resumption of its medium term weakness achieved, attention is now shifted to the 86.52 level, its 1.618 Fib Ext and subsequently the 79.70 level, its April'1995 low. Its weekly studies are bearish and are pointing lower. On any corrective upmove from the present price levels,USDJPY should aim at its just eroded support which should now reverse roles and provide resistance. Other levels are located at the 93.56 level, its Nov 20'08 low and the 96.35/95.75 level .In short, resumption of the pair's medium term declines is expected to target the 86.52 level and beyond. Support Comments 86.52 1.618 Fib Ext 79.70 April'1995 low 77.00 Psycho Level Resistance Comments 90.91 YTD low 93.56 Nov 20'08 low 96.35/95.75 Oct 31'08/Mar'08 lows 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