EURUSD-EUR closed the week higher for the second consecutive week following its recent low at 1.3052.The pair short to the upside in early morning trading today pushing above 1.3231 level suggesting that a challenge on the 1.3292 level, its Dec 12’06 high and a possible gain towards its 20-month high at 1.3365 could be shaping up. If a successful penetration occurs above here, its range breakout price objective at 1.3405 would be the next upside target with a break paving the way for gains aiming atits Mar’05 high at 1.3482.Above here lies another upside resistance at 1.3667, its Dec’04 high. Its daily studies are positive and heading higher supporting this view. On the other hand, immediate downside technical support comes in at 1.3231,its .786 Retfollowed by 1.3169/26 levels, its ST rising trendline/April’05 high/Dec 11’06 low ahead of its 50 ema/.38 Ret (1.2761-1.3365 rally) at 1.3057/37 where a loss could trigger more downside prices towards its Jun’06 high/psychological level at 1.3000/1.On the whole, a clearance of 1.3365 high, its 20-month is required to convince the market that the pair is ready to resume its long term uptrendon hold since early Dec’06
Support
Comments
1.3219/31
Nov 28’06 high/.786 Ret(1.3667-1.1640)
1.3169/26
ST rising trendline/April’05 high
1.3059
MT rising trendline
1.3000/1.2981
Psycho level/Jun’06 high
Resistance
Comments
1.3292
Dec 12’06 high
1.3365
Dec’06 high
1.3405
Broader range breakout price target
1.3482
April’05 high
GBP Pushes Towards Its Range Top
GBPUSD-GBP has been trading in a range since early Dec’06 following its 14-year high at 1.9848 set in Dec 01’06.The pair closed the week and the year above its Dec’04 high at 1.9552 and opened the second day of the year pushing higher in early morning trading today towards itsits range top/Dec’20’06 high at 1.9727.This suggests that if a violation of this level is seen, a move towards its 14-year high at 1.9848 should be expected where a break and close above here will open the door for upside gains targeting its range breakout price target/psychological resistance at /1.9990/2.000 before its 1991/1992 highs at 2.0045/2.0110.Additionally,its daily momentum indicators remain supportive of this view. On the downside, its Dec 28/29’06 highs at 1.9679/68 serve as the first support followed by its Dec’04 high at 1.9552.On a sustained break below here, its Dec 08’06 low/.382 Ret/Nov 29’06 low at 1.9465/29 comes in as the next focus with a loss of this level pushing the pair lower targeting its Mar’06 high/Nov 27’06 low at 1.9327/06 enroute to a key support zone at 1.9218/1.9177,its April’05/Nov 10’06 highs. Overall, GBP has to push through 1.9848 level on a closing basis to set the stage for a run at its psychologically important level at 2.000.
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