EURUSD: Upside Failure Highlights The 1.4262/16 Levels

EURUSD: The pair looks to build on its last week weakness after backing off higher prices ahead of the 1.4625 level, its Nov 03’09 low and breaking back below the 1.4446/79 levels. This development has increased further downside risk towards its psycho level at 1.4300 with a turn below there turning focus to the 1.4262 level, its Jan 08’10 level before its YTD low at 1.4216. This is our preferred bias which is consistent with its short term declines triggered off the 1.5143 level. Invalidating the 1.4216 level will resume its short term downtrend towards the 1.4176 level, its Sept 01’09 low with a break accelerating further downside weakness towards the 1.4044 level, its Aug 17’09 and subsequently its big psycho level at 1.4000.Its daily RSI is bearish and pointing lower suggesting further weakness. However, if EUR is able to hold off the current bears’ attacks and return above the 1.4446/79 area and then finally break and hold above the 1.4625 level, further upside threats could be seen towards the 1.4799 level, its Nov 20’09 high or even higher. On the whole, with a return back below its key resistance at 1.4446/79 level seen, further downside threats are expected towards the 1.4262/16 levels.lish

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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