EURUSD-Little change to technicals as EUR remains below 1.260/78 levels July 26’06 low/Oct 13’06 high) and its 200 ema making yesterday’s close below these levels consistent with its one week price action (ranging between 1.2482 and 1.2578 levels). Such price action and its inability to push higher above these levels put GBP in position to push to the downside towards its Jun/July’06 lows/bottom of the broader range at 1.2477/59 where a possible break lower is likely. If this is seen the next target is its Jan/April highs at 1.2333/25 zone. Further down 1.2210 level, its Mar’06 high could be targeted if the 1.2333/25 area gives way. Weekly and monthly studies remain in support of this scenario. All in all, EUR is still favoured to push for further downside price losses as long as it remains below 1.2560/1.2629 levels.
Support Comments 1.2459/77 Jun/July’06 lows 1.2333/25 April 19'06 low 1.2210 Mar’06 high 1.2068 April 12’06 low
GBPUSD-GBP bounced off its .382 Ret (Late Sept’06-Oct’06 decline) as mentioned in yesterday’s analysis and subsequently pushed lower to close at 1.8674 at the end of the day below its 100 ema.In an early morning trading today, higher level gains were rejected putting the pair back below the above mentioned levels.GBP’s short term outlook remains negative suggesting that the recovery will be followed with further downside price losses with its Oct’06 low at 1.2511 being the immediate target. With longer-term momentum studies pushing lower,a break of this level could be seen bringing 1.8384, its July 25’06 low into focus ahead of 1.8175, its July’06 low. A risk to this analysis would be a break above 1.8800/25 levels enroute to retesting its Oct’06 high at 1.8897.On the whole, downside price losses is likely as the pair’s short term outlook remains bearish.
Support Comments 1.8602/32 Sept 29’06 lows 1.8492/1.8513 .618 Ret/Oct 10’06 low 1.8389 July 26’06 low 1.8175 July’06 low
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.
