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Daily Technical Strategist

EURUSD: Trapped In Its Declining Channel

Wed, Apr 29 2009, 11:19 GMT
by Mohammed Isah

FXTechstrategy  |  View company's profile


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HIGHLIGHTS:

EURUSD:Trapped In Its Declining Channel -Although EUR closed higher Tuesday taking back part of its Monday losses, as long as it maintains its series of lower highs and lower lows and continues to trade within its declining channel, risk remains to the downside.

GBPUSD: Hesitation To Downside Weakness -Even though price hesitation continues to unfold since the pair broke and closed below its rising channel the past week, downside remains is expected while GBP continues to trade below the mentioned channel.


EURUSD

EURUSD

EURUSD: Trapped In Its Declining Channel.

EURUSD: Although EUR closed higher Tuesday taking back part of its Monday losses, as long as it maintains its series of lower highs and lower lows and continues to trade within its declining channel, risk remains to the downside. This development leave supports at the 1.3113 level, its Mar 30’09 low and the 1.3097/93 area, its Feb 09’09 high/.50 Ret (1.2456-1.3738 rally) being target at first followed by the 1.2991 level, its Feb 23’09 high with a clearance of the latter paving the way for a decline towards its Mar 16’09 low at 1.2833.Below there will open the door for further decline towards the 1.2456 level, its Mar 04’09 high enroute to its 2008 low at 1.2330.Its daily stochastics which has just turned lower remains supportive of this view. Alternatively, following through to the upside on its Tuesday gains will call for a move higher towards the 1.3320 level, its falling channel top with a break of there targeting the 1.3443 level which is the location of its daily 200 ema. On the whole, with the pair holding within its declining channel, continuation of its weakness triggered at the 1.3738 level is likely.


GBPUSD

GBPUSD

GBPUSD:Hesitation To Downside Weakness.

GBPUSD: Even though price hesitation continues to unfold since the pair broke and closed below its rising channel the past week, downside remains is expected while GBP continues to trade below the mentioned channel. In such a case, its April 22’09 low at 1.4396 will be targeted ahead of the 1.4305 level, its Mar 06’09 high before the 1.4111 level, its Mar 30’09 high. Its daily RSI is now pointing lower suggesting further downside weakness. To the topside, initial resistance lies at the 1.4662 level, its Feb 23’09 high followed by its Jan 16’09/Feb 09’09 highs at 1.4981/86 with a cut through there bringing further price acceleration towards the 1.5066 level, its April 16’09 high. Beyond the latter will clear the way for the resumption of the pair’s recovery started at the 1.3655 level, its Mar 11’09 high. All in all, with a break and hold below its rising channel achieved, threats remain to the downside.

Published on  Wed, Apr 29 2009, 11:39 GMT


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

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