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Daily Technical Strategist

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AUDUSD: Challenges The 0.8942 Level

Tue, Nov 3 2009, 12:03 GMT
by Mohammed Isah

FXTechstrategy

HIGHLIGHTS:

GBPUSD: Threats Remain Lower, Targets The 1.6249 Level - Extension of Monday weakness was seen in early trading today pushing the pair back below its broken falling channel and increasing....

AUDUSD: Challenges The 0.8942 Level - Having failed to hold on its Monday strength, AUDUSD was seen weakening today breaking below its last week low at 0.8942.

GBPUSD

GBPUSD: Threats Remain Lower, Targets The 1.6249 Level.

GBPUSD - Extension of Monday weakness was seen in early trading today pushing the pair back below its broken falling channel and increasing further threats to the downside. We have highlighted in our previous analysis the risk of GBP holding below the 1.6692 level, its Oct 23’09 high. Supports now come in at its Oct 26’09 low at 1.6249 and its Oct 30’09 high at 1.6124 level with an invalidation of the latter opening up further downside pressure towards the 1.6000 level and then the 1.5706 level printed on Oct 13’09. Its daily studies have turned lower suggesting further downside weakness. However, for our downside view to be annulled, GBP will have to climb back above its key overhead resistance seen at the 1.6692 level where a decisive violation will create scope for further upside incursion towards the 1.6740 level, its Sept 11’09 high with an eventual loss of there setting the stage for a retarget of its YTD high at 1.7041. Beyond the latter will activate the resumption of its medium term uptrend on hold since Aug’09. Overall, threats remain to the downside shorter term as long as the pair continues to trade below the 1.6692 level.

AUDUSD

AUDUSD: Challenges The 0.8942 Level

AUDUSD - Having failed to hold on its Monday strength, AUDUSD was seen weakening today breaking below its last week low at 0.8942. AUDUSD continues to face downside pressure following its loss of momentum at its YTD high at 0.9327 and its subsequent price collapse. Below the 0.8942 level will set the stage for a run at the 0.8902 level where its MT rising trendlineis located. A cap is expected there but on a failure of there, we could witness further declines towards its Oct 01’09 high at 0.8857 and then the 0.8676 level, its Oct 05’09 low. Daily studies are bearish and pointing lower suggesting further downside weakness. On the upside, to avert its present downside threats, AUDUSD must break and maintain above the 0.9275 level, its Oct 26’09 high to signal a return to the 0.9327 level, its YTD high with a clean break above there resuming its MT uptrend and putting it in position to head further higher. On the whole, though medium term biased to the upside, its immediate risk remains lower nearer term.

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Published on  Tue, Nov 3 2009, 12:37 GMT