EURUSD: Recovering On Hammer Formation

EURUSD- Although recovery higher off a hammer formation the past week remains suggestive of a follow through higher, EUR still remains vulnerable while trading below the 1.4000 level and its medium term high at 1.4339. This view also enjoys the support of its potential head and shoulders pattern as well as its nearer term falling channel on the daily timeframe. Supports are situated at the 1.3805 level , representing its Jun 08'09 low which also falls within the vicinity of the 1.3793 level. These levels are envisaged to reverse roles and provide strong supports thereby turning the pair higher again just like the past week. If tested. However, if a cut through there occurs, the 1.3738 level, its Mar 19'09 high will be targeted where a break will highlight lower prices towards the 1.3480 level, its weekly 200 ema. Conversely, though our overall medium term outlook remains to the upside on the pair, we have to see a decisive break and hold above the 1.4339 level to reverse the present downside threats and bring gains higher towards the 1.4719 level, its Dec 18'08 high and then the 1.4867 level, its Sept 22'08 high. On the whole, though biased to the upside in the medium term, EUR continues to be challenged by nearer term corrective weakness.

Directional Bias:
Nearer Term -Mixed
Short Term - Bullish
Medium Term -Bullish

Performance in %:
Past Week: -0.57%
Past Month: +6.89%
Past Quarter: -3.33%
Year To Date: -0.25%

Weekly Range:
High -1.4012
Low -1.3748

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