EURUSD: The 1.3793 Level Limits Corrective Downside

EURUSD - The pair's strong support at the 1.3793 level limited further downside and turned the pair back up to close the week higher at 1.4178 after weakening to a low of 1.3805 the past week. Its medium term bullishness remains in place although it is now trading off its recent high at 1.4339. The pair is now expected to build on its past week strength with eyes on the 1.4178 level where its Jun 11'09 high is located with a break and hold above there putting EUR in position for a retest of the 1.4339 level, its YTD high. Beyond there will resume its medium term uptrend and open the door for further upside risk towards the 1.4867 level, its Sept 22'08 high. On the downside, experiencing another weakness following its Friday negative close will mean additional declines could be seen towards 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. However, if a cut through there occurs, the 1.3738 level, its Mar 19'09 high will be targeted. On the whole, having halted its corrective weakness off the 1.4339 level, EUR looks to follow through higher with attention on the resumption of its medium term uptrend.

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

Performance in %:
Past Week: +0.35%
Past Month: +6.89%
Past Quarter: -3.33%
Year To Date: +0.32

Weekly Range:
High -1.4178
Low -1.3805

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