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Daily Technical Strategist

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EURUSD: EURUSD: Oversold Condition Looks To Trigger Corrective Upmove

Tue, Oct 28 2008, 13:26 GMT
by Mohammed Isah

FXTechstrategy

HIGHLIGHTS:

EURUSD: Oversold Condition Looks To Trigger Corrective Upmove– EUR could be shaping up for a corrective upmove nearer term as oversold condition resulting from its recent sharp medium term declines coupled with the presence of two negative 4 hourly candles (doji & hammer) is set to trigger a correction…

GBPUSD: While The Hammer Bottom Remains Unbroken, GBP May Trace Our A Corrective Recovery- As long as the bottom (1.5265) of a hammer candle pattern (bottom reversal signal) formed Friday remains unbroken, the pair looks to consolidate with potential for corrective upside recovery towards its psycho level at the 1.6000 level initially with a breach of there setting the stage for further higher prices towards the 1.6576 level, its Jan’03 low…

EURUSD: Oversold Condition Looks To Trigger Corrective Upmove.

EUR could be shaping up for a corrective upmove nearer term as oversold condition resulting from its recent sharp medium term declines coupled with the presence of two negative 4 hourly candles (doji & hammer) is set to trigger a correction. While we remain bearish in the medium term, the above scenario if prompted could see the pair strengthening towards the 1.2728 level, its Oct 22’08 low with a trade above there putting the pair in position to challenge its Jan’07 low at 1.2866 and then the 1.2980 level, its Jun’06 high. On the other hand, supports are seen at the 1.2484 level, its Oct 06 low with price extension towards its Jan/April’06 highs at 1.2334/24 envisaged on a loss of there. Below here will expose the 1.1827 level, its Mar’06 low and ultimately the 1.1640 level, its Nov’05 low. This view is in line with its bearish medium term structure. On the whole, the imminent nearer term upmove highlighted above if activated remains corrective of its overall decline started at 1.6038.

Support           Comments

1.2484            Oct’06 low

1.2334/24       Jan/April’06 highs

1.1827            Mar’06 low

Resistance       Comments

1.2728              Oct 22’08 low

1.2866              Jan’07 low

1.2980              Jun’06 high

1.3058             .618 Ret (0.8231-1.6038 rally, monthly chart)

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Published on  Tue, Oct 28 2008, 13:35 GMT