Mohammed Isah
08-31-2008, 10:14 AM
EURUSD: Bearish Downside Momentum Continues To Weigh On EUR.
EURUSD- EUR ended the week lower reversing its previous week’s recovery gains and testing new a low of 1.4571.Weakness on Thursday and Friday continues to suggest the mentioned levels could be retested with a possibility of a break lower exposing its August 19’08 low at 1.4630 initially and then its Aug 26’08 low at 1.4570 followed by its LT rising trendline currently at 1.4500.Below there will set the pair up for further decline towards the 1.4364 level, its Jan 22’08 low. Momentum indicators on the higher time frame charts are supportive of this scenario.However, holding at the current price levels above the 1.4571 low should call for consolidation to higher corrective recovery targeting the 1.4811 level, its August 12’08 low ahead of its August 21’08 high at 1.4909.Further recovery if seen should aim at the 1.4967/51 zone (its range highs from Nov’07 and Jan’08/.618 Ret) and later the 1.5304/1.5285 zone (May/Jun’08 lows).Resumption of its recent decline is envisaged to continue while holding and trading below the last two mentioned resistance zones. On the whole, vulnerability of further downside losses continues to weigh on the pair.
Directional Bias:
Nearer Term –Bearish
Short Term –Bearish
Medium Term –Bearish
Performance in %:
Past Week: -0.78%
Past Month: -5.85%
Past Quarter: +0.01%
Year To Date:+0.59%
Weekly Range:
High -1.4811
Low -1.4571
GBPUSD: GBP Remains On The Defensive, Violates Key Support Levels.
GBPUSD-Continued weakness saw the pair breaking and closing below its key support at its descending triangle breakout price target at 1.8274.Having closed lower at 1.8214 and recorded its largest monthly losses since 1992, GBP now looks to weaken into September targeting its the 1.8177 level, its July 16’06 low with a loss of there putting it in position to head further lower towards the 1.8091 level, its Jun’06 low. Weekly and monthly studies remain suggestive of further downside weakness. On the upside, resistance levels are located at the 1.8270 level and its Oct’06 lows at 1.8518/24.Penetrating and negating these levels will open up upside risk towards the 1.8795 level, its August 21’08 high followed by its Nov’06 low at 1.8836.All in all, momentum on the downside remains unabated suggesting the pair may yield to further losses in the days and weeks ahead.However,persistent overbought condition on the daily time frame remains indicative of a possible nearer term upside recovery.
Directional Bias:
Nearer Term -Bearish
Short Term -Bearish
Medium Term -Bearish
Performance in %:
Past Week: -1.64%
Past Month: -8.14%
Past Quarter: +0.51 %
Year To Date: -8.27%
Weekly Range:
High -1.8590
Low -1.8174
AUDUSD: Resumes Its Broader Declines, Keeps Focus On The 0.8512 Level.
AUDUSD- AUDUSD remains biased to the downside having experienced two failed corrective bounces with the latest one failing on Friday and leaving the pair closing lower at the end of the week. The pair looks to trigger its broader weakness after the mentioned failed attempts and that should turn attention to its Jan/Aug’08 lows at 0.8512/0.8494.Breaking through this strong support zone will set the stage for additional weakness towards .786 Ret at 0.8143(0.7676-0.985) accompanied by its Jan’08 high at 0.7980.Upside objectives are located at the 0.8694 level, its Aug 28’08 high and the 0.8813 level, its Aug 21’08 high.Strenthening above these levels should bring additional upside towards its Mar’08 low at 0.8954.On the whole, with medium term downtrend holding firmly and two failed corrective recoveries,AUDUSD should trade lower and continue its broader bearish outlook into the new month.
Directional Bias:
Nearer Term -Bearish
Short Term -Bearish
Medium Term -Bearish
Performance in %:
Past Week: -0.34%
Past Month: -8.67%
Past Quarter: +6.27%
Year To Date -1.48%
Weekly Range:
High -0.8694
Low -0.8494
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This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are those of FXTechstrategy.com own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which FXTechstrategy.com incurs any responsibility. FXTstrategy.com does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report.
EURUSD- EUR ended the week lower reversing its previous week’s recovery gains and testing new a low of 1.4571.Weakness on Thursday and Friday continues to suggest the mentioned levels could be retested with a possibility of a break lower exposing its August 19’08 low at 1.4630 initially and then its Aug 26’08 low at 1.4570 followed by its LT rising trendline currently at 1.4500.Below there will set the pair up for further decline towards the 1.4364 level, its Jan 22’08 low. Momentum indicators on the higher time frame charts are supportive of this scenario.However, holding at the current price levels above the 1.4571 low should call for consolidation to higher corrective recovery targeting the 1.4811 level, its August 12’08 low ahead of its August 21’08 high at 1.4909.Further recovery if seen should aim at the 1.4967/51 zone (its range highs from Nov’07 and Jan’08/.618 Ret) and later the 1.5304/1.5285 zone (May/Jun’08 lows).Resumption of its recent decline is envisaged to continue while holding and trading below the last two mentioned resistance zones. On the whole, vulnerability of further downside losses continues to weigh on the pair.
Directional Bias:
Nearer Term –Bearish
Short Term –Bearish
Medium Term –Bearish
Performance in %:
Past Week: -0.78%
Past Month: -5.85%
Past Quarter: +0.01%
Year To Date:+0.59%
Weekly Range:
High -1.4811
Low -1.4571
GBPUSD: GBP Remains On The Defensive, Violates Key Support Levels.
GBPUSD-Continued weakness saw the pair breaking and closing below its key support at its descending triangle breakout price target at 1.8274.Having closed lower at 1.8214 and recorded its largest monthly losses since 1992, GBP now looks to weaken into September targeting its the 1.8177 level, its July 16’06 low with a loss of there putting it in position to head further lower towards the 1.8091 level, its Jun’06 low. Weekly and monthly studies remain suggestive of further downside weakness. On the upside, resistance levels are located at the 1.8270 level and its Oct’06 lows at 1.8518/24.Penetrating and negating these levels will open up upside risk towards the 1.8795 level, its August 21’08 high followed by its Nov’06 low at 1.8836.All in all, momentum on the downside remains unabated suggesting the pair may yield to further losses in the days and weeks ahead.However,persistent overbought condition on the daily time frame remains indicative of a possible nearer term upside recovery.
Directional Bias:
Nearer Term -Bearish
Short Term -Bearish
Medium Term -Bearish
Performance in %:
Past Week: -1.64%
Past Month: -8.14%
Past Quarter: +0.51 %
Year To Date: -8.27%
Weekly Range:
High -1.8590
Low -1.8174
AUDUSD: Resumes Its Broader Declines, Keeps Focus On The 0.8512 Level.
AUDUSD- AUDUSD remains biased to the downside having experienced two failed corrective bounces with the latest one failing on Friday and leaving the pair closing lower at the end of the week. The pair looks to trigger its broader weakness after the mentioned failed attempts and that should turn attention to its Jan/Aug’08 lows at 0.8512/0.8494.Breaking through this strong support zone will set the stage for additional weakness towards .786 Ret at 0.8143(0.7676-0.985) accompanied by its Jan’08 high at 0.7980.Upside objectives are located at the 0.8694 level, its Aug 28’08 high and the 0.8813 level, its Aug 21’08 high.Strenthening above these levels should bring additional upside towards its Mar’08 low at 0.8954.On the whole, with medium term downtrend holding firmly and two failed corrective recoveries,AUDUSD should trade lower and continue its broader bearish outlook into the new month.
Directional Bias:
Nearer Term -Bearish
Short Term -Bearish
Medium Term -Bearish
Performance in %:
Past Week: -0.34%
Past Month: -8.67%
Past Quarter: +6.27%
Year To Date -1.48%
Weekly Range:
High -0.8694
Low -0.8494
To receive this technical repor and more please visit www.fxtechstrategy.com
This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are those of FXTechstrategy.com own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which FXTechstrategy.com incurs any responsibility. FXTstrategy.com does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report.