Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Mar 27 09 15:34 GMT |

Today's Focus: EURUSD & USDJPY EURUSD: Correcting With Eyes On The 1.3330 Level and Beyond. USDJPY: Still Maintaining Its Rally Off The 93.55 Level EURUSD EUR remains on the defensive reversing its one-day gain on Wednesday and cutting through its minor support at 1.3419 level, its Mar 25'09 low and another key support at the 1.3386 level, its Jan 19'09 high in early morning trading today. This price development now leaves the pair challenging its strong support at the 1.3330 level, its Jan 27'09 high/former range top where a cap is expected to turn off EUR thereby reversing higher again. This level preserves the pair's short term uptrend activated off the 1.2456 level, its Mar 04'09 low and in order for the said uptrend to remain valid, EUR must hold above the 1.3330.If however that level snaps, declines should shape towards the 1.3093 level, its Feb 09'09 high and subsequently the 1.2992/1.3000 area, its Feb 23'09 high/psycho level. Daily Stochastics and RSI remain bearish as well, pointing towards further weakness. Alternatively, the 1.3419 level, its Mar 25'09 low and the 1.3386 level, its Jan 19'09 high will come in as the immediate upside targets with the 1.3635 level followed by the 1.3736 level, its Mar 23'09 high seen the next two resistance levels. Beyond there if seen will open up further upside risk towards the 1.3857/88 levels, its.618 Ret (1.4719-1.2330 declines)/Sept 11'08 high. On the whole, EUR rise off the 1.2456 level to the 1.3738 level is now undergoing corrective pullbacks with deeper correction targeting the 1.3330 level and beyond. Support Comments 1.3330 Jan 27'09 high 1.3093 Feb 09'09 high 1.2992/1.3000 Feb 23'09 high/psycho level. Resistance Comments 1.3386 Jan 19'09 high 1.3419 Mar 25'09 low 1.3799 Jan 08'09 high USDJPY The recovery started at the 93.55 level, its Mar 19'09 low suffered a temporary set back after the pair was seen reversing its Thursday gains in early trading today suggesting that correction to consolidation of the said rise may be building up. While this occurs above its strong support at the 94.62 level ,its Jan'09 high, we envisage an eventual return to the 99.68 level with a break through there resuming its short term uptrend towards its psycho level/Nov 04'08 high at 100.00/55 or even higher. Its daily stochastics remains supportive of this view as it is trending higher. On the downside, objectives are located at the 96.58 level, its Mar 06'09 ahead of its Mar 12'09 low at 95.67. If that level is taken out, in any case, USDJPY would be set up for a dip towards the 94.62 level ,its Jan'09 high and next the 93.55 level, its Mar 19'09 low. All in all,USDJPY continues to retain s its upside bias triggered off the 93.55 level. Support Comments 96.58 Mar 06'09 95.67 Mar 12'09 low 94.62 Jan'09 high Resistance Comments 98.97 Mar 17'09 high 99.68 Mar 05'09 high 100.00/55 Psycho level/Nov 04'08 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