EURUSD-EUR regained some of its three-day losses yesterday pushing decisively back above 1.3126/30 levels, its April’05 high/Dec 11’06 and challenging the 1.3231 levels, Nov 28’06 high/.786 Ret at 1.3219/31.This is a follow-through in price resulting from its bounce off its MT rising trendline established in late Oct’06..With upside gains seen for two days, EUR should now clear 1.3231 level to signal that a retest and break of 1.3365 is possible. If this is seen, then the resumption of the broader uptrend halted since Dec 03’06 would have been in place with the next technical target coming in at its range breakout price objective at 1.3405 ahead of its April’05 high at 1.3482.Above here lies its Dec’04 high at 1.3667. Daily studies remain positive supporting this view. On the downside, a failure at the 1.3219/31 zone puts the pair in position to push to the downside targeting initially its April’05 high/Dec 11’06 at 1.3126/30 with a break triggering a move towards a retest of its Dec18’06 low/MT rising tendline at 1.3086/52.Below here lies its Jun’06 high/psychological level at 1.3000/1.2981.On the whole, EUR’s longer-term uptrend remains in place as long as it can hold above 1.3000/1.2981.
Support Comments 1.3130/1.3086 April’05 high/Dec 08’06/Nov 27’06 lows 1.3084 MT rising trendline 1.3000/1.2981 Psycho level/Jun’06 high 1.2901/39 Nov 10’06 high/Aug’06 high
Resistance Comments 1.3219/31 Nov 28’06 high/.786 Ret(1.3667-1.1640) 1.3365 Dec’06 high 1.3405 Broader range breakout price target 1.3482 April’05 high
GBP Powers To The Upside
GBPUSD-GBP rallied to a high of 1.9714 yesterday breaking back above its Dec’04 high at 1.9552 and forming a bullish engulfing candle pattern (a bottom reversal signal) on the daily chart. The pair has reversed almost all its three-day losses. This development has exposed its Dec’04 high at 1.9727 where a break will target its Dec 01’06 high at 1.9848.If a penetration and close above here materializes, then the next resistance is seen at its psychological level at 2.000.In naddition,its daily momentum indicators are positive and heading to the upside supporting the above view. On the other hand, its Dec’04 high at 1.9552 now serves as the immediate support with more weakness if it occurs triggering losses towards its Dec 08’06 low/.382 Ret/Nov 29’06 low at 1.9465/34 ahead of its Mar’06 high/Nov 27’06 low at 1.9327/06.A loss of this zone paves the way for a push aiming at its April’05/Nov 10’06 highs at 1.9218/1.9177,a very important support zone. On the whole,GBP needs a close above 1.9848,its 14 year high to resume its primary uptrend halted since Dec 01’06.
Support Comments 1.9552 Dec’04 high 1.9327/06 Mar’05 high/Nov 27’06 low 1.9218 April’05 high 1.9177 Nov 10’06 high
Resistance Comments 1.9726 Dec 08’06 1.9848 Dec 01’06 high 2.000 Psychological Resistance 2.0045/2.0110 1991/1992 highs
Mohammed Isah Independent Analyst Exclusively for Spencer Financial LLC misah@spencerfx.com
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