Today's Focus: EURGBP & AUDUSD
- EURGBP: Recovery Looks To Retest The 0.9073 Level.
- AUDUSD: Pointing To The Downside
As a third day of recovery off the 0.8728 level continues to build up, its Feb 12'09 high at 0.9073 is now being targeted. Above there will allow the pair to trade higher towards the 0.9128/24 area, its Jan 14/13'09 highs accompanied by its Jan 20'09 high at 0.9325 and next its swing high at the 0.9521 level, its Jan 26'09 high. The daily stochastics remains bullish suggesting a follow through higher could be seen.However,our short term bias remains to the downside while the cross continues to hold within its declining channel. On the downside, the 0.8844/38 level, its Jan 09/16'09 lows with the 0.8663/38 levels, its Nov 13'08 high/Feb 10'09 low serving as the immediate support ahead of its .618 Ret(0.7694-0.9803 rally) at 0.8502 and then the 0.8236 level, its Nov 28'08 low.Overall,short term bias remains lower as long as the cross continues to trade within its established channel.
|0.8844/38||Jan 09/16'09 lows|
|0.8663/38||Feb 12'09 low/Nov 13,08 high|
|0.8569||Nov 17'08 high|
|0.9128/24||Jan 14/13'09 highs|
|0.9325||Jan 20'09 high|
|0.9521||Jan 26'09 high|
While clear short and medium term directions are now on hold,AUDUSD continues to trade within its nearer term falling channel signifying that lower level prices are likely to be seen. In such a case, supports are located at its Feb 02'09 low at 0.6249 with a break through that level extending losses lower targeting its Oct'08 low at 0.6008.Beneath the latter will resume its medium term declines now on hold. To the topside, resistance levels are seen at the 0.6643 level, its Feb 13'09 high followed by the 0.6842 level with a cut through there setting the stage for a move towards the 0.7019 level, its Jan 12'09. Rising above the latter will put the pair in position to head further higher towards its Jan 06'09 high at 0.7269. 0.7269.On the whole, its falling channel remains suggestive of further downside losses nearer term.
|0.6249||Feb 02'09 low|
|0.6643||Feb 13'09 high|
|0.6732||Jan 28'09 high|
|0.6842||Jan 19'09 high|
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