EURUSD- While the medium and longer term outlook remain to the upside; EUR now looks to head lower in the nearer term as it prepares to correct its recent run to the upside. This view is supported by their daily momentum indicators which are overbought, making prices vulnerable to downside weakness. Price weakness in early morning trading today may have triggered the said corrective moves. Initial support in such a case lies at the 1.4342/63 zone, its Oct 22’07 high/1.272 Fib Ext. (daily chart) followed by its 1.272 Ext. (monthly chart)/Sept 28 high at 1.4250/81.Although these levels are expected to halt the mentioned corrective pullbacks, their failure could open up risk towards the 1.4162/39 area, its Oct 22’95/Sept 25’07 highs with a loss of there extending additional weakness aiming at the 1.4033/00 levels, representing its Oct 05 & 09’07 lows/psycho level.Alternatively,holding above the 1.4342/63 and 1.4250/81 support levels will put the pair in position to quickly recover and aim at its 2007 peak/Mar’1995 high at 1.4527/35 with a break and hold above there resuming its medium term uptrend and bringing upside gains towards its psycho level at 1.4600.On the whole, though nearer term corrective pullbacks are envisaged, the pair is expected to head higher again after the said corrective moves are over.
- GBPUSD: Broken Rising Channel Top Looks To Provide Support
| 1.618 Fib Ext. /weekly rising channel top |
| Oct 22’07 high/1.272 Fib Ext. (daily chart) |
| 1.272 Ext. (monthly chart)/Sept 28’07 high |
| 1.618 Fib Ext (Daily Chart)/Oct 22’95/Sept 25’07 highs |
| 2007 Peak/Mar’1995 high |
| Psycho Level |
| 1.618 Fib Ext (monthly) |
