EURUSD: Turning Off Bullish Incursions

EURUSD - Although strength saw the pair closing strongly higher on Wednesday, an attempt on a break of its key resistance at the 1.4177 level, its Jun 11'09 high failed suggesting the mentioned upmove may not be sustainable. It was seen weakening in early trading today. However, if a follow through higher occurs and a turn back above the 1.4177 level is seen, further price incursion should shape 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 other hand, if price failure at the 1.4177 level forces EUR lower, its Jun 29’09 low residing at 1.3981 level will initially be targeted ahead of the 1.3826 level, its Jun 22’09 low with a clearance of the latter highlighting 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. On the whole, though biased to the upside medium term, nearer term risks remain to the downside while trading below the 1.4177 level.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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