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EURUSD: Price Failure Turns Attention To The 1.2330 Level

Thu, Nov 20 2008, 15:58 GMT
by Mohammed Isah

FXTechstrategy


HIGHLIGHTS:

EURUSD: Price Failure Turns Attention To The 1.2330 Level- EUR traded back into its symmetrical triangle Wednesday to close at 1.2503 after an intra day upmove pushed it to as high as 1.2814...

GBPUSD: Print Of Higher Level Rejection Candle Portends A Retest Of The 1.4558 Level- Backing off its Oct 24’08 low at 1.5265 Thursday and declining in early morning trading today now suggest a return  back to its YTD low at 1.4558 is now shaping up…

Price Failure Turns Attention To The 1.2330 Level.

EURUSD: EUR traded back into its symmetrical triangle Wednesday to close the session at 1.2503 after an intra day upmove pushed it to as high as 1.2814.The pair's YTD low at 1.2330 is now being targeted. We maintain that the pair's medium term outlook remains lower and the resolution of its current range should be to the downside with a continuation of its overall weakness started at the 1.6038.Support in such a case are located at the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) and the 1.1827 level, its Mar’06 low.However,if a return back above its Wednesday high at 1.2814 is seen, EUR should head further down towards its Nov 13'08 high ahead of the 1.3058/05 level, its Oct 23’06 high/.618 Ret (0.8231-1.6038 rally, monthly chart) and then the 1.3259/98 level, its Oct 30’08 high/Oct 10’08 low. Break of the latter will serve as a trigger for directional bias out of its current range though not envisaged. On the whole, pressure continues to build on the 1.2330 level and possibly even lower.

Support         Comments

1.2484          Oct’06 low

1.2330/24     Oct 28’08 low/Jan/April’06 highs

1.2134          .50 Ret (0.8231-1.6038 rally)

1.1827          Mar’06 low

Resistance     Comments

1.2866          Jan’07 low

1.3058/05     Oct 23’06 high/.618 Ret (0.8231- 1.6038 rally, monthly chart)

1.3259/98     Oct 30’08 high/Oct 10’08 low

Published on  Thu, Nov 20 2008, 16:04 GMT


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FXTechstrategy http://www.fxtechstrategy.com/ | m.isah@fxtechstrategy.com

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