EURUSD-After two weeks of price losses following its decline off its Sept’06 high at 1.2873, EUR powered off 1.2629 low to close the week at 1.2783, breaking above its broken rising trendline/1.2700/25 levels. Although the pair closed above these levels on Thursday, the follow through on Friday was not as convincing as expected as the price action at the end of the day formed a doji candle suggesting indecision or hesitation. It opened the week rising to a high of 1.2819 in early morning trading and was trading at a low of 1.2767 as at the time of this analysis. On a push to the downside, 1.2700/25 levels and its broken trendlines should hold and reverse roles as support. A failure at this zone puts this pair in position to push for a retest of its Sept’06 low at 1.2629.On the other hand, holding above the mentioned zone opens up EUR’s chances of higher price level gains with 1.2873,its Sept’06 high as the immediate target ahead of 1.2981,its Jun’06 high. The daily Stochastics is still positive which supports the above view. On the whole, although EUR is still looking to test high level prices, it is now stalling above 1.2700/25 levels suggesting lower level price losses are possible
Support Comments 1.2765 Broken rising trendline 1.2641/29 Sept’06 low/.618 Ret (July-Aug rally)
1.2561/60 .786 Ret/July 26’06 low
1.2489/1.2459 Daily 200 ema/July’06 low
Resistance Comments 1.2830 Sept 22’06 high 1.2871/79 Aug 31’06 high/Sept’06 high
GBPUSD-GBP followed through to the upside to close the week at 1.9010 , the second of such a weekly close since it made a low at 1.8602 two weeks ago. This development has pushed the pair above its psychological level at 1.9000 as well as its major emas/broken rising trendline.On any pullback, these levels should now serve as resistance turned support and push the pair higher first, towards 1.9080,its Sept’06 high and later, towards 1.9143,its year-to-date high. As can be seen from the chart, the stochastics is overbought but is now trying to push below the overbought line which might suggest that a pullback/consolidation is shaping up as this is happening at the time the price is stalling. The 1.8934/18(broken rising trendline/Sept 14’06 low) levels should provide support for GBP and hold any downward price corrections. On a failure at these levels, GBP should target its 50 ema currently at 1.8825 ahead of its Sept 18’06 low at 1.8735.On the whole,GBP’s short term trend is up which is now aligned with its longer term uptrend but it needs a convincing close above 1.9143 level to support its retest of 1.9552(Dec’04 high) high argument.
Support Comments 1.8929/18 Broken rising trendline/Sept 14’06
1.8754 Sept’06 low
1.8621/02 .50 Ret/Sept’06 low
1.8500/1.8489 .618 Ret/Round number
Resistance Comments
1.9088 Aug 31’06 high
1.9143 Aug’06 high
1.9218 April’05 high
Mohammed Isah
Independent Analyst
Exclusively for Spencer Financial LLC
The information has been prepared for information purposes only. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. This information contained herein is derived from sources we believe to be reliable, but of which we have not independently verified. Spencer Financial LLC assumes no responsibilities for errors, inaccuracies or omissions in these materials, nor it shall be liable for damages arising out of any person's reliance upon this information. Spencer Financial LLC does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Spencer Financial LLC shall not be liable for any indirect, incidental, or consequential damages including without limitation losses, lost revenues or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results
Disclaimer: All information on this web site is subject to change. The use of this web site constitutes acceptance
of our user agreement. All publisher financial articles at
FXtree.com are those of the individual authors and do not represent trading recommendations
of FXtree.com or its staff.
