Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Apr 27 09 11:53 GMT |

Today's Focus: EURJPY & USDCAD EURJPY: A third-Week Of Downside With A Hammer Formation. USDCAD: Retest Of The 1.1983 Level Looks To Occur EURJPY EURJPY weakened for a third week in a row holding below its psycho level at 130.00 to test a low of 126.09 before reversing part of those losses to close at 128.27.A hammer candle has now formed following its bounce off its strong support s at its Mar 30'09 low at 126.41 and its Mar 26'09 high at 126.09.A follow through higher on that hammer formation is now expected for confirmation and if that occurs, further recovery will shape up towards the 130.00 level followed by its Oct 30'08 high at 131.06/range top with a breach of there bringing further upside gains towards the 134.33/53 area, its Mar 24'09/April 13'09 highs enroute to the 137.42 level, representing its April 06'09 high. On the other hand, a failure to follow through will turn focus to the 126.41 and 126.09 levels where cap is expected again. Below there if seen should pave the way a move towards the 122.12 level, marking its Mar 12'09 low and may be even lower. This downside view is consistent with its current weakness activated at the 137.42 level in early April'09. On the whole, although respite might be coming the pair's way, it remains biased to the downside following its weakness off the 137.42 level Support Comments 126.40 Mar 30'09 low 122.12 Mar 12'09 low 131.06 120.01 Feb 09'09 high Resistance Comments 127.65 Mar 13'09 high 129.72 Dec 29'09 high 131.06 Range top USDCAD Having reversed almost all of its recovery gains started at the 1.1983 level, its April 16'09 low,USDCAD is now shaping up for a retest of that level in the coming week. Supporting this is the fact that the pair has printed a higher level rejection candle and its weekly momentum indicators are bearish and pushing to the downside suggesting further weakness. Beyond the 1.1983 level will set the stage for a move lower towards the 1.1771 level, its Jan 07'09 low and then its Nov 05'08 low at 1.1464. Resistance is located at the 1.2192 level, its Mar 19'09 low ahead of its April 07'09 high at 1.2484 followed by the 1.2716 level, its April 01'09 high with a cut through there putting the next upside target at the 1.2957 level, its Mar 12'09 high. Overall, weakness off the 1.3064 level remains in progress having invalidated and maintained below its ascending triangle Support Comments 1.2192 Mar 19'09 high 1.2024 Jan 28'09 low 1.1981/71 April 16'09 low/daily 200 ema Resistance Comments 1.2482 April 07'09 low 1.2673 Feb17'09 high 1.2789 Mar 16'09 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