Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Jan 09 09 12:03 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Nearer Term Recovery Sees Further Upside Gains. GBPUSD: GBP Maintains Recovery Momentum. EURUSD EUR's rise off the 1.3313 level, its Jan 06'09 low built more upside momentum Thursday maintaining a second day of higher gains to close at 1.3698.The pair's short term upside embarked upon from the 1.2330 has halted and as long as the 1.4363 level, its Dec 29'08 high remains resistance, we envisage further downside losses through the 1.3298 level, its Dec 11'08 high/former range top with the next support residing at its .618 Fib Ret (1.2330-1.4719 rally)support at 1.3244 and then its Nov 25'08 high at 1.3081.On the contrary, a break and hold above 1.4363 level must occur to reduce the current downside threat and bring further upside gains towards the 1.4719 level, its Dec 18'08 high. We retain our medium term bearish tone on the pair despite its recent upside incursions (ST) and see a return to the 1.2330 level and possibly beyond. On the whole, its decline off the 1.4719 level remains consistent with its MT downtrend now on hold. Support Comments 1.3531 Oct 20'08 high 1.3298 Dec 11'08 high/former range top 1.3244 .618 Fib Ret (1.2330-1.4719 rally) Resistance Comments 1.3785 Oct 09'08 high 1.3882/1.3900 Sept 11'08 high/.618 Ret. 1.4363 Dec 29'08 high. GBPUSD Since reversing off the 1.4378 low on Jan'02'09, GBP has steadily recovered higher pushing through the 1.5000 level on Thursday to close at 1.5225.This development has opened up upside risk towards its strong resistance at the 1.5724 level, marking its Dec 17'08 high but before there it has to overcome the 1.5250/65 zone and the 1.5534 level, its Nov 25'08 high first. The 1.5724 level is expected to limit upside gains and turn the pair lower again before resuming its overall medium to longer term downtrend. Supports are situated at the 1.4831 level, its Jan 01'08 ahead of the 1.4558 level, its Nov 13'08 low. The next lies at its Dec 04'08 low at 1.4470 and ultimately the 1.4352 level, its YTD low. All in all, the pair's current recovery remains corrective of its overall medium to longer term declines off the 2.1161 high. Support Comments 1.4831 Jan 01'09 high 1.4558 Nov 13'08 low 1.4470 YTD low Resistance Comments 1.5724 Dec 17'08 high 1.5250/65 Nov 19'08 high/Oct 24'08 low 1.5534 Nov 25'08 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