EURUSD-EUR put in another strong advance yesterday clearing its Nov’06 high/LT rising trendline and making a five-month high at 1.2958, the highest price seen since Jun’06.This new development has put the pair in position to push higher and challenge its year-to-date high/psychological resistance at 1.2981/1.3000.With the daily and weekly studies positive and heading higher, EUR is supported on further upside gains towards the aforementioned levels and even beyond. Above 1.2981/1.3000 zone should see the pair target its April’05 high at 1.3126 followed by its Mar’05 high at 1.3482 with a loss of this level aiming at its Dec’04 high at 1.3667.On the downside, the broken resistance levels at 1.2901/1.2886 zone (Nov 10’06 high/Broken LT falling trendline) should now revert to support and propel the pair higher. If these levels fail, pressure on the downside could push the price towards its Sept 22’06 high/.786 Ret at 1.2839/30.Another support is seen at 1.2690/79 levels, its Nov 03 & 06 lows before its Sept’06 lows at 1.2641/29.On the whole, EUR has crossed an important hurdle and is now poised to push through 1.2981/1.3000 levels and beyond
Support Comments 1.2901/1.2886 Nov 10’06 high/Broken LT falling trendline 1.2830/39 Sept 22’06 high/.786 Ret 1.2774/47 Oct 03’06 high/Nov 08,15,17 lows/.618 Re 1.2690/79 Nov 03 & 06 lows
Resistance Comments 1.2981/1.3000 Year-to-date high/psycho level 1.3126 April’05 high 1.3482 Mar’05 high 1.3667 Dec’04 high
GBP Moves Closer To Its Nov’06 Highs
GBPUSD-GBP like EUR also made a run to the upside yesterday challenging its Nov’06 high at 1.9177 but closed slightly lower (1.9142) ahead of that level .With daily momentum counting in this pair’s favour,a test and successful break of this level could be seen. Such a break would put the pair on the path of resuming its original uptrend on hold since Jun’06.Upside targets following the above scenario will initially target 1.9218,its April’05 high with a close above this level paving the way for gains towards 1.9327,its Mar’05 high. On a penetration and negation of this level, its Dec’04 high at 1.9552 comes into play. On the other hand, any dip should be contained by, its Sept 25’06 high/LT falling trendline from Dec’04 at 1.9073/1.9067.If further weakness is seen, the pair could push lower towards, its Nov’6 & 9’06 lows at 1.8976/48 followed by 1.8858/34, its Oct 20’06 high/Nov 15 & 17 lows ahead of 1.8671,its Oct 24’06 low.Overall,GBP is on the verge of breaking above its YTD high at 1.9177.This is required in order for the pair to resume its primary trend
Support Comments 1.9073/67 Aug 31 & Sept 25 highs/LT trendline 1.8948/76 Nov 6 & 9’06 lows/Nov 17’high 1.8858/34 Oct 20’06 high/Nov 15&17 lows 1.8777/33 Rectangle pricetarget/Oct 17&18’06 highs
Resistance Comments 1.9177 Nov’08 high 1.9218 April’05 high 1.9327 Mar’05 high 1.9552 Dec’04 high
Mohammed Isah Independent Analyst Exclusively for Spencer Financial LLC misah@spencerfx.com
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