EURUSD: Calm After The Storm

EURUSD: Having rallied strongly on Tuesday breaking above its key resistance at the 1.4446 level to resume its medium term uptrend, EUR was seen digesting those gains in early trading today. The immediate challenge for the pair is to maintain above the 1.4446 level and keep its break higher valid thereby targeting additional higher prices. With that said, EUR has its next upside target located at the 1.4719 level, its Dec 18'08 high with a turn above there allowing further upside towards the 1.4875 level, representing its Sept 21'09 high. Its daily stochastics and RSI are bullish and pointing higher suggesting further strength. On the downside, support begins at the 1.4446 level, its just eroded former resistance followed by the 1.4405 level and then the 1.4176 level, its Sept 01'09 low. Below there will target its MT rising trendline currently seen at 1.4142. That zone should cap declines and turn the pair back up again if seen. Overall, having invalidated the 1.4446 level and activated the resumption of its medium term uptrend, risk remains to the upside.

Support Comments

• 1.4446 Aug 05'09 high
• 1.4405 Aug 27'09 high
• 1.4176 Sept 01'09 low

Resistance Comments

• 1.4446 YTD high
• 1.4719 Dec 18'08 high
• 1.4875 Sept 21'09 high

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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