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Daily Technical Strategist
Highlights: EURUSD EUR Consolidates EURUSD- Having made a run sharply to the upside in recent days and to as high as 1.3833 on Thursday, EUR is now in a consolidative(trading within a 4 hourly rising channel) mode as is overbought suggesting that such moves should bring nearer term downside losses to unwind the mentioned overbought condition. Downside targets if the above scenario plays out are seen at its late April’07/Dec’04 highs at 1.3681/68 and its May 04’07/April 19, 24 & 23’07 lows at 1.3534/53 followed by the 1.3433 level, its Jun 19’07 high and the 1.3371/63 levels, its Jun 21’07 low/Dec’06 high. On the other hand, pushing decisively through 1.3784/1.3833 levels, its 1.272 Fib Ext/2007 high will clear the way for additional gains towards the 1.3926 level which represents its 1.618 Fib Ext with a break of there setting the stage for a run at its psycho level at 1.4000. The weekly Stochastics and RSI remain bullish supporting further upside offensive. On the whole, EUR is likely to consolidate/pullback further as is now faced with overbought condition. Support Comments 1.3668/81 Dec’04/2007 1.3626/37 May 07/April 20’07 high/July 02’07 high 1.3534/53 May 04’07/April 19, 24 & 23’07 lows 1.3371/63 Jun 21’07 low/Dec’06 high Resistance Comments 1.3784/1.3833 1.272 Fib Ext/2007 high 1.3926 1.618 Fib ext 1.4000 psychologically important levels 1.4101 Sept’1992 high This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author’s 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 the author incur any responsibility. The 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