EURUSD: Turns Above The 1.4823 Level, Closes In On Its 2007 Peak

EURUSD- A break and close above the 1.4823 level, which marks the pair’s Jan 04’08 high on Monday has now opened up risk for further upmove towards the 1.4967 level, its 2007 peak. This development continues to support the pair’s medium term outlook and an eventual break above the 1.4967 level (2007 Peak) will trigger the continuation of that trend towards its psycho level at 1.5000 initially and then the 1.5155 level, its 1.618 Fib Ext.The weekly momentum indicators remain supportive of this scenario.However,if the overbought condition now a factor on the daily time frame were to unwind, a turn to the downside will see the pair trading towards the 1.4823 level ahead of the 1.4751/52 zone, its Nov 09’07/Dec 11’07 followed by its Jan 01’08 low at 1.4577.On successfully penetrating the latter, the 1.4310 level, which is the location of its Dec 20’07 low will be targeted. The 1.4823 level is however expected to reverse roles and provide support before the pair pushes higher towards the 1.4967 level. On the whole, having decisively overcome the 1.4823 level, a run at the 1.4967 and beyond is now envisaged.

Support Comments

1.4823 Jan 04’08 high

1.4751/52 Nov 09’07/Dec 11’07 Highs

1.4577 Jan 01’08 low

1.4310 Dec 20’07 low

Resistance Comments

1.4967 2007 Peak

1.5000 Psycho Level

1.5155 1.618 Fib Ext.

GBPUSD: Downside Weakness Continues To Dominate

GBPUSD-While a break below its .50 Fib (1.8091-2.1160 rally) support and a host of other support levels at 1.9653/23 occurred the past week, price action continues to suggest further downside momentum is likely with the first target coming in at the 1.9498 level, its weekly 100 ema. Breaking down through there will put the pair in position to head lower towards its .618 Ret (1.8091-2.1160 rally) at 1.9271 and next its Mar 05’07 low at 1.9183.The weekly and monthly studies continue to support this view. On the contrary, a turn higher at the present level could see the pair recovering towards the 1.9653/23 where an initial resistance is expected. Above there will set the stage for further upmove aiming at the 1.9753 level, its Dec 24’07 low with a clearance of the latter paving the way for a challenge on the 1.9879 area, its Sept 18’07 low enroute to its psycho level at 1.2000.All in all, as long as the pair maintains within its daily falling channel, odds of further decline remain high.

Support Comments

1.9498 Weekly 100 Ema

1.9271 .618 Ret

1.9183 Mar 05’07 low

1.9023 May’2006 high

Resistance Comments

1.9653/23 Aug 17’07 high/.50 Ret (1.8091-2.1160 rally)/Jun 08’07

1.9879 Sept 18’07 low

1.2000 Psycho Level

1.2094 Daily 200 ema