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Daily Technical Strategist

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EURUSD: Halts Declines, Targets The 1.4844 level

Fri, Oct 30 2009, 10:41 GMT
by Mohammed Isah

FXTechstrategy

HIGHLIGHTS:

EURUSD: Halts Declines, Targets The 1.4844 level - An early extension of the pair’s corrective declines was rebuffed Thursday pushing it strongly higher and wiping out its

GBPUSD: Looks To Retarget The 1.6692 Level - The pair maintained an offensive tone on Thursday cutting through its strong resistance at the 1.6466 level,

GBPUSD

GBPUSD: Looks To Retarget The 1.6692 Level.

GBPUSD - The pair maintained an offensive tone on Thursday cutting through its strong resistance at the 1.6466 level, its Sept 23’09 high and turning risk to the upside towards the 1.6692 level, its Oct 23’09 high. Though immediate risk remains higher, we want to see a convincing violation of the 1.6692 level which will put an end to its collapse off there(1.6692) last week and clear the way for a move higher towards the 1.6740 level, its Sept 11’09 highwhere a break higher will pave the way for a run at its YTD high at 1.7041. We retain our short term downtrend outlook on the pair while trading below the 1.6692 level. In such a case, immediate support lies at the 1.6358 level followed by the 1.6239 level where its Oct 19’09 low is located ahead of its Sept 30’09 high at 1.6124 with a break creating scope for further weakness towards the 1.5708 level printed on Oct 13’09. Below the latter will set off the resumption of its short term downtrend. On the whole, GBP must break and hold above the 1.6692 level to reverse its current downside threats and signal a recapture of the 1.6740 level.

EURUSD

EURUSD: Halts Declines, Targets The 1.4844 level.

EURUSD - An early extension of the pair’s corrective declines was rebuffed Thursday pushing it strongly higher and wiping out its Wednesday losses to close higher at 1.4837. Although its mentioned nearer term weakness has halted, EUR must build on its Thursday strength and break and hold above its strong resistance residing at the 1.4844 level, its Sept 21’09 high to signal further upside gains towards the 1.5000 level. A breach of the latter will expose its YTD high at 1.5062 with a loss of there triggering the resumption of its medium term uptrend. On the other hand, we remain suspicious of its current recovery if it continues to trade and hold below the 1.4844 level. In such a case, its intra day low at 1.4682 will be targeted if fails to head higher with a violation of there turning attention to its LT trendlineat 1.4556. We envisage this level if seen should cap declines and push the pair back up. On the whole, having halted its corrective declines, risk now remains to the upside but EUR must break and hold above the 1.4844 level to prevent threats of returning to the 1.4682 level.

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Published on  Fri, Oct 30 2009, 10:48 GMT