EURUSD: Retarget Of The 1.4361 Level Builds Up

EURUSD: As EUR began the week/month on the bullish side rallying sharply higher in early trading today, its strong overhead resistance residing at the 1.4361 level (Dec 29’08 high) is now being targeted. EUR remains medium term bullish and a clean break through the latter level will call for further strength towards the 1.4718 level, its Dec 18’08 high with a cut through that level triggering further upside gains towards the 1.4867 level, its Sept 22’08 high. Momentum indicators ranging from the monthly to the daily remain supportive of its current upside tone. However, if a corrective pullback occurs, lower prices should shape towards the 1.4167 level , its May 29’09 high ahead of the 1.4049 level , its 2009 high. Invalidating the latter will bring continued declines towards its big support level at 1.4000. We expect this level or even the 1.4049 level to reverse roles and provide support thereby turning the pair higher again. On the whole, EUR retains its medium term bullishness and should target additional higher prices with the 1.4361 level seen as the next target.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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