Mohammed Isah
09-19-2008, 07:18 AM
EURUSD: Risks Of A Decline Towards The 1.3882/52 Looms.
EURUSD: EUR’s follow-through to the upside on the back of its Wednesday upmove failed to hold above its Sept 15’08 high at 1.4481 and its invalidated LT rising trendline currently at 1.4510 turning the pair lower and printing a hammer candle pattern. This brings to two the number of failures recorded at that zone with the first one occurring in mid-Sept’08 and this has now increased the odds of downside losses targeting its major support at the 1.3882/52 area, its Sept 11’08/July’07 lows at 1.3882/52.While other support levels line up before this zone, price action at this levels could create two scenarios with a hold at that level drawing a double bottom or a failure of that level triggering the resumption of the pair’s medium term decline off the 1.6038 level towards the 1.3361 level, its Aug’07 low. Upside targets are now seen at the 1.4366/10 area, its Jan’08/Dec’07 lows where a break could set up the pair aiming at the 1.4429 level, its Sept 08’08 high with scope for price extension towards the 1.4481 level and then its eroded LT rising trendline/Sept 18’08 high at 1.4510/42.Momentum indicators remain suggestive of more strength. On the whole, having failed to sustain gains above 1.4481/1.4542 area, EUR now runs the risk of pushing towards its key support at 1.3882/52.
Support Comments
1.4015 Oct’07 low
1.3882/52 Sept 11’08 low/July’07 high
1.3361 Aug’07 low
1.3264 July’07 low
Resistance Comments
1.4366/10 Jan’08/Dec’07 lows
1.4429 Sept 08’08 high
1.4481 Sept 15’08 high
1.4510/42 Broken LT rising trendline
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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’s follow-through to the upside on the back of its Wednesday upmove failed to hold above its Sept 15’08 high at 1.4481 and its invalidated LT rising trendline currently at 1.4510 turning the pair lower and printing a hammer candle pattern. This brings to two the number of failures recorded at that zone with the first one occurring in mid-Sept’08 and this has now increased the odds of downside losses targeting its major support at the 1.3882/52 area, its Sept 11’08/July’07 lows at 1.3882/52.While other support levels line up before this zone, price action at this levels could create two scenarios with a hold at that level drawing a double bottom or a failure of that level triggering the resumption of the pair’s medium term decline off the 1.6038 level towards the 1.3361 level, its Aug’07 low. Upside targets are now seen at the 1.4366/10 area, its Jan’08/Dec’07 lows where a break could set up the pair aiming at the 1.4429 level, its Sept 08’08 high with scope for price extension towards the 1.4481 level and then its eroded LT rising trendline/Sept 18’08 high at 1.4510/42.Momentum indicators remain suggestive of more strength. On the whole, having failed to sustain gains above 1.4481/1.4542 area, EUR now runs the risk of pushing towards its key support at 1.3882/52.
Support Comments
1.4015 Oct’07 low
1.3882/52 Sept 11’08 low/July’07 high
1.3361 Aug’07 low
1.3264 July’07 low
Resistance Comments
1.4366/10 Jan’08/Dec’07 lows
1.4429 Sept 08’08 high
1.4481 Sept 15’08 high
1.4510/42 Broken LT rising trendline
To receive this technical report and more please visit www.fxtechstrategy.com (http://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.