Technical Major Currencies Report, Thursday December 18 , 2008

Euro

The pair continues to appreciate ignoring the fact being traded in an overbough area as it undergoes a sharp incline on the short term. On the medium term howeever, the pair is targeting the 61.8% correction for the downside channel that started 15-7-2008 and ended on 27-10-2008 where this level lies at 1.4620. Today we see the intraday trend correcting to the downside yet with no effect on the short term trend but since it has reached the key resistance for the upisde channel, it might slightly decline. The trading range for today is among the key support at 1.3945 and the key resistance at 1.4715. The general trend is to the downside as far as 1.5080 remains intact with targets at 1.2340 and 1.2225.
Support	1.4380	1.4315	1.4285	1.4250	1.4210
Resistance	1.4485	1.4540	1.4575	1.4620	1.4660
Recommendation	...

Great British Pound (GBP)

The pair failed to gather enough bullish momentum to break several critical resistance levels. Today we are back to 1.5460 - 1.5475 levels which will determine the direction of the pair on the short term. Despite seeing positive signals that support the upside movement, the pair continues to weaken but again, the 1.5460 level will determine the fate of the pair. The trading range for today is among the key support at 1.5345 and the key resistance at 1.5935 The general trend is to the downside as far as 1.9400 remains intact with targets at 1.4435 and 1.4095
Support	1.5500	1.5460	1.5415	1.5345	1.5245
Resistance	1.5595	1.5640	1.5680	1.5700	1.5740
Recommendation	Adjustment to the previous position after reaching the stop loss (Buy the pair above 1.5500 with targets at 1.5640 and stop loss below 1.5415) New Recommendation: Sell the pair below 1.5420 with targets at 1.5290 and stop loss with a four hour close above 1.5560

Japanese Yen (JPY)

The 87.35 level was able to limit further losses on the pair and resulted in an intraday upside channel. With 87.30 intact and not having a four hour close below it, will keep the upside trend visible on the intraday and short term. However please note that the overall trend is still to the downside. The trading range for today is among the key support at 85.80 and the key resistance at 90.50 The general trend is to the downisde as far as 102.10 remains intact with targets at 84.95 and 82.60
Support	87.80	87.50	87.30	86.70	86.45
Resistance	88.35	88.60	89.05	89.45	89.85
Recommendation	Buy the pair above 87.80 with targets at 88.60 and stop loss with a four hour close below 87.20