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Weekly-Daily Forex Technical View – January 21, 2008

Weekly-Daily Forex Technical View – January 21, 2008
Sunday, January 20th, 2008 @ 7:31 am by Bogdan Parascanu

EUR/USD Technical View

EurUsd failed to print a new high on the weekly chart, it stopped just under the November 23rd high at 1.4966 at the resistance offered by the trendline that connects August and September 2007 swing lows. Breaking the weekly movement on a daily basis we see that Monday the pair pushed higher and although it made a new high on Tuesday after that we had a straight down move supported by a speech from an ECB banker and the fact the EurUsd was trading in an overbought area. The weekly low was made on Thursday at 1.4587 and after that we saw the bearish momentum slowing down and the pair closed just above 1.4600. We maintain our bearish bias for the following days with the mention that Monday is a holiday in the US and trading might be slow; perhaps the most important bearish target is December 20th low at 1.4300 which is also an important support level a place where bullish traders will want to use as a base for a repeat of December’s movement.
Resistance Levels

  • 1.5000– round number
  • 1.4966- Nov 23rd high
  • 1.4735 –Nov 9th High

Support Levels

  • 1.4500- round number
  • 1.4300 – Sept 30th High
  • 1.4000 – Round number
  • 1.3850 – July 24th High

GbpUsd Technical View

GbpUsd traded between two important support and resistance levels for the most part of the week, after bouncing from the 1.9550 zone it was rejected by the resistance area above 1.9700 and this scenario repeated 3 times during this past week; only On Thursday the pair managed to spike up toward the 1.9800 level but it lacked strength to stay there and fell back to close the week pips away from the 1.9550 base. A continuation of Friday’s move in the next few days will certainly confirm the bearish trend for the last couple of months, a break below 1.9550 will open up the road to 1.9180 as the main bearish target and support level. Conversely a bounce from the 1.9550 that will get the pair trading above 1.9600 will force us once again in the above mentioned range and we will have to look at 1.9670 as the next short term target. Same as in the EurUsd case the pairs trading volume on Monday will be affected by the US holiday and to some extent we could witness some erratic price action or a very mellow day.

Resistance Levels

  • 2.1148 – Nov 9th High
  • 2.1065 – Nov 7th High
  • 2.0650 – July 24th High
  • 2.0365 – September 12th High

Support Levels

  • 2.0000 – Round number
  • 1.9800 – Round Number
  • 1.9670 – August 17th Low
  • 1.9180


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