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Weekly Technical Strategist

EURUSD: Outlook Still Pointing Higher

Mon, May 18 2009, 12:46 GMT
by Mohammed Isah

FXTechstrategy  |  View company's profile

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HIGHLIGHTS:

EURUSD: Outlook Still Pointing Higher -Although its first week of weakness registered the past week following its rise off the 1.2886 level remains suggestive of further declines, EUR still retains its short term uptrend activated off the 1.2456 level, its Mar 04’09 high.

GBPUSD: Continues To Maintain Recovery Off The 1.3655 Level -Despite the fact that GBP weakened and closed lower the past week, as long as it continues to hold above its daily rising trendline and the 1.4986 level, threats remain to the upside for an eventual resumption of its ST uptrend.

EURUSD

EURUSD: Outlook Still Pointing Higher.

EURUSD-Although its first week of weakness registered the past week following its rise off the 1.2886 level remains suggestive of further declines, EUR still retains its short term uptrend activated off the 1.2456 level, its Mar 04’09 high.
With that said a follow through lower could be seen targeting the 1.3385 level, its April 30’09 high ahead of the 1.3213 level, its May 04’09 low. Its daily RSI has turned lower supporting this view. On the upside, a break back above the 1.3722 level, its May 13’09 high followed with its Mar 19’09 high at 1.3738 will be required to trigger its short term uptrend towards its Jan 05’09 high at 1.3964.Beyond the latter will leave the pair aiming at the 1.4363 level, its Dec 29’08 high. Its weekly momentum indicators are bullish and trending higher suggesting further strength. On the whole, though now correcting, EUR remains biased to the upside in the short term.

GBPUSD

GBPUSD: Continues To Maintain Recovery Off The 1.3655 Level.

GBPUSD-Despite the fact that GBP weakened and closed lower the past week, as long as it continues to hold above its daily rising trendline and the 1.4986 level, threats remain to the upside for an eventual resumption of its ST uptrend. In such a case, the 1.5374 level, its Jan 08’09 high will be targeted ahead of the 1.5724 level, its Dec 17’09 high. Its weekly studies are bullish and trending higher supporting this view. On the other hand, if a build up on its last week losses occurs, we could see further declines towards the 1.4986 level with a break below there allowing price acceleration towards the 1.4836 level, its May 04 09 low and then its April 27’09 low at 1.4517 level.
All in all, having retained most of short term recovery gains, GBP should head back up on ending its current correction.

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Published on  Mon, May 18 2009, 12:51 GMT

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