EURUSD-EUR put in a slightly lower close yesterday following its recent corrective downside pressure off its 20 month high at 1.3365.With 1.3231/15 levels remaining unbroken,EUR should attempt a retest of its year-to-date high at 1.3365 where a break if seen could trigger upside gains towards its broader range breakout price target at 1.3405.If this technical resistance breaks then the pair is headed towards 1.3482,its Mar’05 high with a successful penetration paving the way for further gains targeting its Dec’04 high at 1.3667.The pair is supported by its higher time frame chart which are heading to the upside. On the other hand, if a break and close below 1.3231/15 is seen, weakness could be seen pushing the pair lower towards 1.3126/1.3086 levels, its April’05 high/Nov 27’06 low with a violation aiming at 1.3000/1.2981,its Jun’06 high/psychological level where the price is expected to halt and push the pair higher preserving its breakout of a six-month trading range. On the whole, EUR’s outlook remains positive as long as 1.3000/1.2981 zone holds
Support Comments 1.3219/29 Nov 28’06 high/.786 Ret(1.3667-1.1640) 1.3126 April’05 high/Nov 27’06 low 1.2981/1.3000 Year-to-date high/psycho level 1.2901/39 Nov 10’06 high/Aug’06 high
Resistance Comments 1.3405 Broader range breakout price target 1.3482 Mar’05 high 1.3667 Dec’04 high 1.4000 Psychological Resistance
GBP Maintains Above 1.9552
GBPUSD-GBP closed lower Thursday making it four days in a row of such lower level prices. The pair’s Dec’04 all time high at 1.9552 looks vulnerable but if it can test and hold above this level, it should challenge its YTD high at 1.9848 in the days ahead with scope for price extension towards its psychologically important level at 2.000.Beyond here, technical resistance lies at 2.0045/2.0110,its 1991/1992 highs. On the downside, if 1.9552 gives way,GBP should see downside pressure targeting its Nov 29’06 low at 1.9434 initially with a break triggering further weakness towards its Mar’06 high/Nov 27’06 low at 1.9327/06 followed by its April’05/Nov 10’06 highs at 1.9218/1.9177.On the whole,GBP maintains its longer term upside tone and should push higher on completing its present corrective downside losses.
Support Comments 1.9635 Dec 01’06 low 1.9552 Dec’04 high 1.9327/06 Mar’05 high/Nov 27’06 low 1.9218 April’05 high
Resistance Comments 1.9848 Dec 01’06 high 2.000 Psychological Resistance 2.0045/2.0100 1991/92 highs 2.1447 .786 Ret(2.4519-1.0841)
Mohammed Isah Independent Analyst Exclusively for Spencer Financial LLC misah@spencerfx.com
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