EURUSD: Consolidates, The 1.4000 Level To Provide Support
EURUSD- After an initial run to an intra high of 1.4130 Monday, EUR turned off that high to close lower at 1.4072 at the end of the session. With daily momentum topping out as a result of its recent rally, consolidation to pullbacks is likely with its psychological level at 1.4000 expected to provide support where a cap is expected before further challenges on upside again. If however this fails to materialize, a run at the 1.3928 level, marking its Sept 13’07 high could be seen with a breach of there paving the way for further weakness towards its July 24’07 high/its .382 Ret (1.3551-1.4130 rally) at 1.3838/52.The next support lies at its rising trendline drawn off the 1.3551 low currently at 1.3772.On the upside, nearby resistance stands at its Sept’1992/Sept 24’07 highs at 1.4104/30 followed by the 1.4160 level, its Oct 22’0 high ahead of its 1.272 Ext at 1.4250(monthly chart) and then its 1995 high at 1.4535.This view is supported by its weekly studies which are bullish and heading higher. On the whole, EUR’s outlook remains to the upside in both the medium and longer terms.
Support Comments
1.4000 Psychologically important levels
1.3926 2007 peak
1.3839/52 Aug 06’07/July 24’07 high
1.3772 Rising Trendline
Resistance Comments
1.4104/30 Sept’1992/Sept 24’07
1.4160 Oct 22’0 high
1.4250 1.272 Ext
1.4535 Mar’1995 high
GBPUSD: Backs Off Its Falling Trendline
GBPUSD-GBP turned ahead of the 2.0365 level, its Sept 12’07 high and below its falling trendline at 2.0300 to close at 2.0201, forming a higher level rejection candle on Monday. This is coming on the back of an intra upmove above the said trendline. With the wiping out of almost yesterday’s upside gains, odds are for further downside weakness which is now evident on the daily time frame in early trading today. The 2.0059/72 area, its April 25/26’07/May 01’07 high is now seen as the next downside target with a loss of there opening the door for additional downside pressure towards the 1.9966 level, its Jun 05’07/ high and even lower at the 1.9909/1.9877 zone, which is the location of its weekly channel base/weekly 200 ema/Sept 21’07 low. Below here will turn focus to the 1.9659 level printed in Mid-Aug’07.The daily RSI is now heading lower implying more downside weakness. On the whole, the pair’s short term downside weakness looks to continue as price action has clearly shown.
Support Comments
2.0059/72 April 25/26’07/May 01’07 highs
1.9966 Jun 05’07 high
1.9909/1.9877 Weekly channel base/Weekly 200 ema/Sept 21’07 low
1.9659 Mid-Aug’07
Resistance Comments
2.0132 .50 Ret (1.9632-2.0652)/April 18’07 high
2.0181/191 July 30’07 low/Aug 27’07 high
2.0365 Sept 12’07
2.0461 Aug 06’07 high
This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are those of FXTechstrategy.com 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 FXTechstrategy.com incurs any responsibility. FXTstrategy.com 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.
Tags: forex,foreigne xchange,currency,euro,usd
No comments:
Post a Comment