EURUSD: Extends Upside Gains, Focuses On The 1.4535 Levels

EURUSD- While a fourth consecutive day of upside gains saw the pair push through the 1.4342/63 zone, its Sept 28’07/Oct 22’07/1.272 Fib Ret (daily chart)the past week, it was seen building on those gains in early trading today testing as high as 1.4437.Holding on to those gains would suggest a run at the nearby resistance at 1.4463/68,its 1.618 Fib Ext. /weekly rising channel top ahead of a solid technical level at 1.4535,which is the location of its Mar,1995 high. The pair’s daily stochastics remains bullish to overbought. On the downside, if a corrective pullback is seen, then the 1.4342/63 area will be targeted, a level expected to reverse roles and provide support. Below here if seen will pave the way for lower prices towards its 1.272 Ext. (monthly chart)/Sept 28 high at 1.4250/81 followed by the 1.4162/39 area, its Oct 22’95/Sept 25’07 highs/daily rising channel and next the 1.4033/00 levels, representing its Oct 05 & 09’07 lows/psycho level. On the whole, as long as the key layers of resistance invalidated continues to hold,EUR looks to head higher towards its Mar’1995 high at 1.4535.

Support Comments

1.4342/63 Oct 22’07 high/1.272 Fib Ext. (daily chart)

1.4250/81 1.272 Ext. (monthly chart)/Sept 28’07 high

1.4159/62 1.618 Fib Ext (Daily Chart)/Oct 22’95/Sept 25’07 highs

1.4033/00 Oct 05 & 09’07 lows/psycho level

Resistance Comments

1.4463/68 1.618 Fib Ext. /weekly rising channel top

1.4535 Mar’1995 high

1.4600 Psycho Level

GBPUSD: Closes In On The 2.0652/79 Area

GBPUSD- GBP was seen heading higher above 2.0602 levels in early trading today. This is coming on the heels of its convincing break and close above the 2.0461/94 zone, its Aug 03’07/Oct 01’07 highs the past weeks. If the pair surpasses its year-to-date/channel top at 2.0652/79, then it will aim at the 2.0985 zone, its 1978 high before its psycho level at 2.1000.The daily and weekly studies are positive supporting further upside gains.Alternatively, while pullbacks could be seen, as long as such pullbacks are limited to its daily channel base currently at 2.0181 or even its weekly rising channel at 2.0051, its medium and longer term uptrend remain to the upside. Immediate support levels are located at the 2.0461/94 levels, (Aug 03’07/Oct 01’07 highs) and its Sept 12’07 high at 2.0365 followed by the 2.0319 level, its Sept 24’07 high and then its July 30’07 low/Aug 27’07 high at 2.0191/81.All in all,GBP continues to maintain its upside pressure and should push through its YTD high at 2.0652 if that momentum remains intact

Support Comments

2.0461/94 Aug 03’07/Oct 01’07 highs

2.0365 Sept 12’07 high

2.0319 Sept 24’07 high

2.0181/191 July 30’07 low/Aug 27’07 high

Resistance Comments

2.0652/79 Channel Top/2007 Peak

2.0985 1978 high

2.1000 Psycho Level