EURUSD-EUR failed twice last week to push above 1.3365 level(Dec 01’06 high) and subsequently collapsed on Friday closing below its .786 Ret at 1.3231.With failure at higher level prices coupled with downside pressure seen throughout last week, the pair could push lower initially towards its April’05 high/Nov 27’06 low at 1.3126/1.3086 followed by its Jun’06 high/psychological level at 1.3000/1.2981.This zone is expected to contain downside pressure and send the pair higher targeting 1.3365 high. Daily studies are negative supporting the current downside pressure. On the upside, a break back above 1.3219/31 zone is required to put the pair in position to push for a retest of its 20 months high at 1.3365 where a break and close above it will target its broader range breakout price objective at 1.3405. A loss of this level will trigger further upside gains towards 1.3482, its Mar’05 high ahead of its Dec’04 high at 1.3667. Overall, EUR’s primary trend remains up as long as 1.3000/1.2981 zone holds.
Support Comments 1.3126/1.3086 April’05 high/Nov 27’06 low 1.3000/1.2981 psycho level/Jun’06 high 1.2901/39 Nov 10’06 high/Aug’06 high 1.2761 Nov 17’06 low
Resistance Comments 1.3231/19 Nov 28’06 high/.786 Ret(1.3667-1.1640) 1.3405 Broader range breakout price target 1.3482 Mar’05 high 1.3667 Dec’04 high
GBP Sees Weakness Near Term
GBPUSD-GBP also saw downside pressure the past week closing below its Dec’04 high and recording its first weekly loss since breaking above 1.9177 two weeks ago. These corrective downside losses could see an extension especially now that the daily studies are negative and pushing lower. In such a situation, its Nov 29’06 low at 1.9434 should be the first target ahead of its Mar’06 high/Nov 27’06 low at 1.9327/06 with a break opening the door towards its April’05/Nov 10’06 highs at 1.9218/1.9177.This level should hold and allow the resumption of the pair’s original uptrend but if a failure is seen, its earlier upside gains will be invalidated and focus would then be shifted to the downside. Upside target is seen at 1.9552 with a decisive and sustained break back above here paving the way for gains towards its Dec 08’06 at 1.9726 followed by its Dec’06 high at 1.9848.A loss of this level calls for a push towards 2.000 level, its psychological resistance ahead of its 1991/1992 highs at 2.0045/2.0110.On the whole, preservation of the 1.9177 level is required by GBP to keep its longer term upside campaign alive
Support Comments 1.9327/06 Mar’05 high/Nov 27’06 low 1.9218 April’05 high 1.9177 Nov 10’06 high 1.8834 Nov 17’06
Resistance Comments 1.9552 Dec’04 high 1.9726 Dec 08’06 1.9848 Dec 01’06 high 2.000 Psychological Resistance
Mohammed Isah Independent Analyst Exclusively for Spencer Financial LLC misah@spencerfx.com
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.
