EUR traded to a high of 1.2733 before bumping into its broken 100 ema now acting as resistance to close at 1.2707 yesterday, two pips lower than the previous day's close.It remains vulnerable to the downside as long as it is unable to close above 1.2727/37 levels, its Aug 25'06 low/ 100 and 50 emas.In an early morning trading today,EUR broke below its short term rising trendline and was challenging its Sept 26'06 low at 1.2663.This suggests that a sustained close below its trendline/1.2663/29 levels should see the pair pushing towards its July 26'06 low at 1.2560 enroute to its July'06 low at 1.2459.In addition, the momentum indicators remain bearish supporting the above view. On the whole, EUR looks vulnerable to further price losses.
Support Comments
1.2663/29 Sept'06 lows/.618 Ret (July- Aug rally) 1.2561/60 .786 Ret/July 26'06 low 1.2489/59 Daily 200 ema/July'06 low 1.2396 April 19'06 high
Resistance Comment
1.2727/37 100/50 Emas 1.2830/79 Aug 31'06 highs 1.2971/1.3000 May'06 high 1.3126 April'05 high
GBPUSD-Yesterday made it three consecutive days of downside price losses in the GBP off its Sept 25’06 high at 1.9073 and from what the charts are telling us there are no signs that a pause is in sight yet. It traded to a low of 1.8723 below its rising trendline before a small pullback yesterday and sold off to a new one-week low of 1.8673 in early morning trading as at the time of this analysis. This suggests that more price losses are expected towards its Sept’06 low at 1.8602.If this level gives way, its July 26’06 low at 1.8389 comes into play ahead of its July’06 low at 1.8175.GBP is well supported by its momentum indicators, which are pushing to the downside. On the whole, GBP’s short-term trend remains intact therefore more downside price losses are likely.
Support Comments
1.8621/02 .50 Ret/Sept’06 low 1.8493/18500 .618 Ret/Round number 1.8389 July 26’06 low 1.8175 July’06 low
Resistance Comments
1.8735/65 Broken rising trendline/Sept 18’06 low 1.8918/00 Sept 14’06 high 1.9000/80 Psychological level/Sept’06 high 1.9145 Aug’06 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.
