Currency Technical Report

Currency Technical Report

Fri, Jul 4 2008, 08:50 GMT
by George Antonakos

FXGreece


EUR/USD

Resistance : 1,5725-35/ 1,5750/ 1,5775/ 1,5795/ 1,5825-30/ 1,5850/ 1,5900
Support : 1,5675-80/ 1,5635/ 1,5580/ 1,5525

Comment : Resistance levels at 1.5900-10 area couldn't be breached and the market used the period after the announcements for profit liquidation, as we had mentioned in our yesterday’s report. The downward break of 1.5820 led to 1.5700, with low at 1.5775 and euro gives retracement signs.
Such a negative day in the daily chart, at the upper part of the move, indicates that a top formation at 1.5900 is possible, and it may lead to a downward move within the sideways consolidation.
Yesterday's big decline probably needs a retracement, and first resistance is found at 1.5725-35, followed be the area of 1.5775-85. The range for any retracement, in terms of a correction, will be at 1.5825-35.
Above those levels, a retracement would indicate a reversal and yesterday's decline will be canceled.
The area of 1,5580-00 will be the first target in case of a further decline, with interim support at 1.5620-30. Our basic target will be at 1.5450 area...


TRADING EUR/USD : The decline yesterday led euro to important support levels, where a retracement is possible. For long term sell positions, we will use the retracements towards 1.5800 area, with stops above 1.5855 or above yesterday’s tops and target at 1.5450. For the short term, sell positions could be tried at 1.5765-75 area. A move to new lows, without breaching the important resistance at 1.5725-35, would lead to 1.5635.



GBP/USD

Resistance: 1,9850/ 1,9880/ 1,9900-10/ 1,9950
Support : 1,9810/ 1,9790-00/ 1,9750/ 1,9690

Comment : The negative picture, we had described for the pound, was confirmed and first important support at 1.9800 was tested.
The trend should continue and retracements should be limited at 1.9890-00 area. A move to new lows could lead to 1.9730 and 1.9650 area.

TRADING GBP/USD : We remain bearish setting our stops above 1.9915 area. First target will be at yesterday's lows, followed by the area of 1.9750...


USD/JPY


USD/CHF



Published on  Fri, Jul 4 2008, 08:53 GMT

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