EURUSD: Slipping Towards The 1.3747/33 Level

EURUSD: With a clearance of its YTD/July’09 lows at 1.3851/31 seen during the US session today, risk continues to build to the downside towards its strong support standing at the 1.3747/33 levels, its Jun 16’09 low/.50 retracement (1.2328-1.5143 rally). A firm invalidation of these levels will call for further downside pressure towards its .61 Fib retracement/May 18’09 low at 1.3422/09 where a cap may be seen thereby triggering a recovery higher. Its daily and weekly studies are bearish and pointing lower suggesting further weakness. Alternatively, on any recovery higher from its current price levels, its just invalidated support at the 1.3851/31 level is expected to reverse roles and provide resistance thereby turning the pair back down. Further out, upside objectives are located at the 1.4025/28 levels, its Jan 21’10 low/Feb 03’10 high and the 1.4194 level, its Jan 25’10 high. On the whole, having lost recovery momentum and sold off sharply lower through the 1.3851/31 levels , threats of a retarget of the 1.3747/33 levels and beyond are now seen.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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