Today's Focus: EURUSD & GBPUSD
* EURUSD: EUR Flirts With The 13298 Level...
* GBPUSD: Builds Up To Retarget The 1.4352 Level.
Although a break and close below the 1.3298 level, its Dec 11'08 high/former range top was seen on Tuesday, early morning trading today saw the pair testing above that level. A continued hold below the 1.3298 level is required to drive prices further lower towards its Nov 25'08 high at 1.3081 accompanied by the 1.2551 level, its Dec 04'08 low and then its YTD low at 1.2330.The falling channel now in place on the daily chart also supports the pair's downside view. The daily stochastics remains bearish to oversold. Upside objectives are located at its Jan 06'09 low/Oct 30'08 high at 1.3313/1.3298 and the 1.3531 level, its Oct 20'08 high before the 1.3785 level, its Oct 09'08 high. On the whole, with the falling channel now in place and the decline from the 1.4719 level remaining in force, EUR is susceptible to the downside.
1.3081 Nov 25'08 high
1.2551 Dec 04'08 low
1.2330 YTD low
1.3298 Dec 11'08 high/former range top
1.3531 Oct 20'08 high
1.3785 Oct 09'08 high
A third-day of consecutive downside losses following the pair's failure at the 1.5374 high has now opened up downside risk towards its YTD low at 1.4352.With the pair still maintaining its medium and long term bearish bias, a sustained break of the latter should push GBP further lower towards the 1.4045 level, its Jan'02 low. Unless a return back above the 1.5374 level occurs, our downside view remains valid. Its daily studies which are trending lower are supportive of this scenario. Resistance comes in at the 1.4831 level, its Jan 01'09 high at first and then the 1.5000 level followed by the 1.5374 level printed on Jan 08'08.All in all,GBP is now looking to recapture the 1.4352 level and beyond.
1.4558 Nov 13'08 low
1.4470 Dec 04'08 low
1.4352 YTD low
1.4831 Jan 01'09 high
1.5000 Psycho level
1.5250/65 Nov 19'08 high/Oct 24'08 low