EURUSD: Shapes Up For Higher Recovery

EURUSD: The pair could be shaping up for a recovery higher which is coming on the back of its sell off from the 1.5139/43 levels, its YTD high/Dec 03'09.With a turn off the 1.4233 level seen on Wednesday, a follow-through higher to the upside could put the pair on the path of corrective recovery towards its Aug 05'09 high at 1.4446 and then the 1.4479 level, Dec 02'09 low where we might likely see a cap thereby turning the pair lower again. If however those levels snap, further upside gains could develop towards the 1.4625 level, its Nov 03'09 low with a turn above there paving the way for more strength towards the 1.4799 level, its Nov 20'09 high. On the downside, its Dec 22'09 low at 1.4216 comes in as the immediate downside target with a cut through there allowing for further weakness aiming at the 1.4176 level, its Sept 01'09 low. Further down, supports are situated at the 1.4044 level, its Aug 17'09 and next its big psycho level at 1.4000.On the whole, though currently building up corrective strength as long as that remains below the 1.4625/1.4799 levels, its nearer term bias remains to the downside.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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