Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Dec 16 08 13:42 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Continued Higher Recovery To Target The 1.3785 Level. GBPUSD: Clearance Of The 1.5048 Level Opens Scope For a Run At The 1.5534 Level. EURUSD EUR continues to challenge higher prices Monday breaking to a two-month high at 1.3727 and opening the door for further upmove towards the 1.3785 level, its Oct 09'08 high. Convincingly penetrating and negating this level will create additional upside risk towards the 1.3882/1.3900 area ,its Sept 11'08 high/.618 Ret(1.4857-1.2330 decline).Its weekly studies are strongly bullish suggesting more gains though those of the daily chart are bullish to overbought. Initial support now sits at its .50 Ret at 1.3600 followed by the 1.3531 level, its Oct 20'08 high ahead of the 1.3298 level, its Oct 30'08 high. Our outlook for the pair in the current environment is for it to maintain its upside tone triggered off the 1.2551 level. On the whole, EUR remains medium term bearish and nearer term bullish. Support Comments 1.3600 .50 Ret 1.3531 Oct 20'08 high 1.3298 Oct 30'08 high Resistance Comments 1.3785 Oct 09'08 high 1.3882/1.3900 Sept 11'08 high/.618 Ret(1.4857-1.2330 decline) 1.4073 Sept 16'08 high GBPUSD Following a clean break and close above the 1.5048 level, its Dec 08'08 high, its nearer term corrective recovery started at the 1.4470 level now looks to retarget its Nov 25'08 high at 1.5534 with scope for price extension towards the 1.5885 level, its Nov 10'08 high. This present nearer term recovery remains corrective signifying that its broader medium to long term bearishness continues to dominate. The daily RSI and Stochastics are bullish and pointing higher supporting this view. On the downside, supports are residing at the 1.5048 level , the 1.4558 level, its Nov 13'08 low and its YTD low at 1.4470.All in all, although the pair is now dominated by its current nearer term upmove, its overall outlook remains bearish. Support Comments 1.5250/65 Nov 19'08 h 1.5048 Dec 08'08 1.4558 Nov 13'08 Resistance Comments 1.5534 Nov 25'08 1.5885 Nov 10'08 1.6039 Nov 06'08 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