Daily Forex Technicals | Written by FXTechstrategy | Dec 19 08 13:12 GMT |
Today's Focus: EURUSD & GBPUSD
- EURUSD: Prints A Shooting Star Candle After Failing At The 1.4719 Level.
- GBPUSD: Failure At Higher Prices To Trigger Declines Towards The 1.4470 Level.
EUR's attempt at further upside prices was cut short Thursday reversing lower and closing at 1.4293, forming a shooting star candle pattern(top reversal signal).The pair is experiencing its first downside losses since breaking and closing above the 1.3298 level on Dec 11'08.After going vertical to the upside for days, corrective pullbacks of that short term run will not be a surprise at this stage. We envisage a follow through lower targeting the 1.4073 level, its Sept 16'08 high initially with a penetration and negation of there setting the stage for a decline towards the 1.3882/1.3900 area, its Sept 11'08 high/.618 Ret. The 1.3785 level, its Oct 09'08 high will be aimed at if an invalidation of the later zone occurs. Upside objectives run from the 1.4310 level, its Dec 20'08 low, its psycho level at 1.3500 to its Sept 22'08 high at 1.4857.On the whole, we could even see a retest of the 1.3298 level if its present corrective pullbacks take the nature of its parabolic move off the 1.2551 level.
| Support | Comments |
| 1.4073 | Sept 16'08 high |
| 1.3882/1.3900 | Sept 11'08 high/.618 Ret |
| 1.3785 | Oct 09'08 high |
| Resistance | Comments |
| 1.4310 | Dec 20'08 low |
| 1.4500 | Psycho Level |
| 14857 | Sept 22'08 high |
GBP followed through to the downside on Wednesday breaking the 1.5250/65 zone, its Nov 19'08 high/Oct 24'08 low and opening up scope for lower prices towards the 1.5048 level, its Dec 08'08 high and then the 1.4558 level, its Nov 13'08 low. A clean break of the latter will reverse its nearer term recovery started at its YTD low at 1.4470 and turn focus to that level and possibly lower towards its Jan'02 low at 1.4045.Its daily RSI and Stochastics are pointing lower suggesting more downside weakness. Resistance levels are located at the 1.5250/65 zone and the 1.5534 level, its Nov 25'08 high accompanied by the 1.5724 level, marking its Dec 17' 08 high. Further out, the next target sits at the 1.5885 level, its Nov 10'08 high. As indicated in our previous analyses of the corrective nature of its move from the 1.4470 level, we expect the pair to resume its medium to longer term weakness towards the 1.4045 level.
| Support | Comments |
| 1.5048 | Dec 08'08 high |
| 1.4558 | Nov 13'08 low |
| 1.4470 | YTD low |
| Resistance | Comments |
| 1.5250/65 | Nov 19'08 high/Oct 24'08 low |
| 1.5534 | Nov 25'08 high |
| 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
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