EURUSD: Looks To See Further Downside Pressure

EURUSD- Having turned off the 1.4177 level, its Jun 11'09 on Wednesday and followed through lower on Thursday, potential for further downside weakness continues to be seen though an early morning recovery higher was seen today. With this view supported by its bearish stochastics, we envisage weakness to initially target its Jun 29'09 low residing at 1.3981 level with a trade below there accelerating further declines towards the 1.3826 level, its Jun 22'09 low. Below the latter will highlight the 1.3738 level, its Mar 19'09 high where a cap is expected. Breaking and closing below there will turn focus to the 1.3618 level, its weekly 200 ema. To the upside, its psycho level resting at 1.4000 will be aimed at followed by the 1.4177 level, its Jun 11'09 where a clearance will open up more upside risk towards the its YTD high at 1.4339.Above there will resume its medium term uptrend towards the 1.4719 level, its Dec 18'08 high and possibly higher targeting the 1.4867 level, its Sept 22'08 high. On the whole, having rejected the 1.4177 level on several occasions, EUR remains vulnerable to downside nearer term.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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