EURUSD-EUR pushed to the downside yesterday closing at 1.3181 low and forming a long-legged doji, which signifies indecision. The pair remains below 1.3231/92 levels, its .786 Ret/Dec 12’06 and as long as the zone holds, short-term downside pressure cannot be ruled out. A breach of this zone is required to trigger upside gains towards its year-to-date/20-month highs at 1.3365 with scope for extension targeting its 1.3405, its range breakout price objective. Above here would pave the way for further gains towards its April’05 high at 1.3482 ahead of its Dec’04 high at 1.3667.Its daily studies are positive and pointing to the upside. On the downside, its April’05 high/Dec 11’06/ MT rising tendline at 1.3106/30 comes in as the immediate support with a break pushing the pair lower towards a retest of its Dec18’06 low at 1.3052.A successful violation will open the door for more downside pressure aiming at its Jun’06 high/psychological level at 1.3000/1.2981.Overall,this support zone remains important to the preservation of its primary uptrend
Support
Comments
1.3130/1.3086
April’05 high/Dec 08’06/Nov 27’06 lows
1.3059
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 Sees Mild Downside Losses
GBPUSD-GBP followed through to the downside yesterday following its bounce off the 1.9727/48 levels on Wednesday. It is now trading in a short term range bounded by two horizontal lines with 1.9727 on the upside and 1.9464 on the downside. A break to the upside gives a price target of 1.9990 while downside resolution has price target coming in at 1.9201 established by measuring the width of the range and projecting it from the breakout point. Technical resistance comes in at 1.9727/48,its Dec 08’06/Dec 20’06 highs followed by its 14-year/YTD highs at 1.9848 where a break and close it should propel the pair towards its range breakout price target/psychological resistance at /1.9990/2.000 ahead of its 1991/1992 highs at 2.0045/2.0110.On the downside, a continued failure below 1.9727/48 puts the initial downside target at its Dec’04 high at 1.9552 where aviolation could aim at its Dec 08’06 low/.382 Ret/Nov 29’06 low at 1.9465/34.Further out, its Mar’06 high/Nov 27’06 low at 1.9327/06 serves as the next support ahead of its April’05/Nov 10’06 highs at 1.9218/1.9177.Although its long term trend remains to the upside,GBP requires a close above its 14-year high at 1.9848 to set the stage for upside gains targeting 2.000.
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.
