EURUSD: Trapped In A Channel

EURUSD: While a reversal ahead of its key support residing at the 1.3738 level, its Mar 19’09 high has now stalled, EUR now sees threats of further corrective declines as long as it is trading within its ST falling channel. The above mentioned support will be targeted on lower prices where we still expect a cap to turn the pair higher to preserve its medium term uptrend. However, on a violation of there, risks of further weakness will shape towards its daily 200 ema at 1.3548 level. To the topside, resistance lies at the 1.4000 level, its psycho level with a turn above there putting the 1.4338 level, its 2009 high under pressure. Beyond there will activate the resumption of its medium term uptrend and clear the way for a run at the 1.4718 level, its Dec 18’08 high ahead of the 1.4864 level, its Sept 22’08 high. On the whole, though biased to the upside in the medium term, EUR continues to experience corrective price activities in the nearer term.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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