EURUSD: On The Tear For The 13422 Level

EURUSD: With a clean violation of its July 08’09 low at 1.3831 and the 1.3747/33 levels, its Jun 16’09 low/.50 retracement(1.2328-1.5143 rally) established, risk of further weakness has scope towards the 1.3422 level, its .61 Fib retracement/May 18’09 low at 1.3422/09. However, our bearish view on EUR may be tempered with a corrective recovery following its fourth consecutive week of sell off initiated from the 1.4578 level on Jan 13’10 high. If the 1.3422/09 level is seen first, further price extension should target its Jun 03’09 low at 1.3211 and may be even lower. Its weekly and monthly studies are bearish and pointing lower supporting this view. On the contrary, if corrective recovery is triggered from the current price levels, the 1.3747/33 levels will be aimed at first followed by the 1.3831 level. We expect a combination of these two levels to reverse roles and provide resistance thereby turning the pair lower again. Other upside objectives are located at the 1.4000 level and the 1.4028/44 levels, its Jan 21’10/Aug 17’09 lows.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which the author incur any responsibility. The does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report