Daily Forex Technical View – November 29, 2007

EUR/USD Technical View

EurUsd is trading close to the same levels it was when our previous commentary was written, but it has certainly moved a lot in the mean time; finding support at the 1.4700/1.4735 area on wednesday gave the pair an excellent reason to shoot back up above 1.4800 forming a hammer like candle on the daily charts closing the day a few points above the open, though the downside pressure was to big and the US dollar started to recover and we witnessed the pair falling back again towards the above mentioned support area. We are getting closer to the up sloping trendline marked on our chart which should offer additional support and can be a good base for yet another north recovery.

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 very similarly to the EurUsd and after moving lower on Wednesday morning it started a push north that ended at the 38.2 Fib retracement line of the 2.1144/2.0350 move south, the pair formed a nice big green candle on the chart below but it has given back all the gains in today’s Asian session. Looking at the chart below we can see that a rather aggressive bearish flag has begun to form and if this will trigger we have a calculated target of 2.0000 for the south move, a move that will need a few days to completely develop, however the pair needs to break below 2.0650 for this move to even be considered; on the other hand a rejection of the 2.0650 support line will bring to our attention yesterday’s high point at 2.0830 as the next bullish mid term target.

Resistance Levels

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

Support Levels

• 2.0460 – August 3rd High
• 2.0365 – September 12th High
• 2.0200 – Round number