EURUSD-EUR made a run to the upside on Tuesday clearing 1.3231(.786 Ret of 1.3667-1.1640 decline) and 1.3245(Dec 20’06 high) levels to close at 1.3274 after hitting a high of 1.3295.The pair must clear 1.3292, its Dec 12’06 high in other to build a case for a retest of 1.3365, its Dec 03’06 high and a possible push above here targeting 1.3405, its range breakout price objective. Above here would open the door for further upside gains aiming at its Mar’05 high at 1.3482 with a break exposing its Dec’04 high at 1.3667.Its daily studies remain supportive of this view. Immediate downside target is seen at 1.3231, its .786 Ret followed by 1.3169/26 levels, its ST rising trendline/April’05 high/Dec 11’06 low. If this zone gives way, focus will then be shifted to its 50 ema/.38 Ret (1.2761-1.3365 rally) at 1.3057/37 where a violation could trigger losses towards its Jun’06 high/psychological level at 1.3000/1.2981.On the whole, although EUR’s long term trend remains to the upside, it needs to decisively clear its 20-month high at 1.3365 to resume that uptrend.
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 Remains Hesitant Ahead Of 1.9748 Level
GBPUSD-Although GBP opened the second day of the year on the upside hitting a high of 1.9740 on Tuesday, it needs to break and close above its ST range top/Dec 13&20’06 highs at 1.9727/48 to challenge its 14-year high at 1.9848 set in early Dec’06.A successful penetration of this level will trigger upside gains towards its range breakout price target/psychological resistance at /1.9990/2.000 ahead of its 1991/1992 highs at 2.0045/2.0110.In addition, its daily momentum indicators are positive supporting further upside gains.However,if it fails to push above 1.9727/48 levels its first downside target comes in at its Dec 28/29’06 highs at 1.9679/68 followed by its Dec’04 high at 1.9552 with further weakness if it occurs, pushing the pair towards its Dec 18’06 low/.382 Ret/range bottom at 1.9465/29.Below here see more downside pressure targeting its Mar’06 high/Nov 27’06 low at 1.9327/06 and 1.9218/1.9177 levels, its April’05/Nov 10’06 highs.Overall,GBP must overcome its 14-year high at 1.9848 to validate the view of running at 2.000 level.
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