Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Jan 16 09 12:56 GMT |

Today's Focus: EURUSD & GBPUSD EURUSD: Maintains Below The 1.3298 level. GBPUSD:Nearer Term Corrective Recovery Builds Up. EURUSD A hammer candle (bottom reversal signal)was formed Thursday after EUR gave back part of its intra day losses to close at 1.3160.As long as the pair continues to trade below the 1.3298/1.3313 zone, representing its Jan 06'09 low/Oct 30'08 high or even within its falling channel, odds are for the continuation of its decline off the 1.4719 level. Downside targets are located at its Dec 04'08 low at 1.3081 with a turn below there putting EUR in position to move towards the 1.2551 level, its Dec 04'08 low and finally its YTD low at 1.2330.Conversely, the 1.3298/1.3313 zone comes in as the initial resistance accompanied by the 1.3531 level, its Oct 20'08 high with a break through there extending gains higher towards the 1.3785 level, its Oct 09'08 high. On the whole, with the pair sustaining its break below the 1.3298 level and trading within its established falling channel, further downside gains are envisaged. Support Comments 1.3081 Nov 25'08 high 1.2551 Dec 04'08 low 1.2330 YTD low Resistance Comments 1.3298 Dec 11'08 high/former range top 1.3531 Oct 20'08 high 1.3785 Oct 09'08 high GBPUSD GBP has embarked on a corrective recover y closing higher for a second-day in a row after touching a low of 1.4471 ON Jan 13'09.Despite this price action, GBP's overall medium to longer term downside weakness remains in force. With that said, a follow through was seen in early morning trading today suggesting further upside gains towards the 1.4831 level, its Jan 01'08 ahead of the 1.5000 level followed by the 1.5374 level printed on Jan 08'08.In order for the reduction of the current downside pressure to be seen, a break and close above the 1.5374 level will have to occur. The daily RSI has turned higher supporting further upside gains. On the downside, supports are located at the 1.4558 level, its Nov 13'08 low and the 1.4470 level, its Dec 04'08 low. Below there will leave the pair aiming at its YTD low at 1.4352.All in all, while the 1.5374 level remains as resistance, GBP should recapture the 1.4352 level or even see the resumption of its longer term weakness triggered off the 2.1168 level in Nov'07 Support Comments 1.4558 Nov 13'08 low 1.4470 Dec 04'08 low 1.4352 YTD low Resistance Comments 1.4831 Jan 01'09 high 1.5000 Psycho level 1.5250/65 Nov 19'08 high/Oct 24'08 low 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