EURUSD: Begins Corrective Pullbacks

EURUSD: A clean wipe out of its Tuesday gains was seen on Wednesday suggesting as alluded to in our past analysis corrective pullbacks. Our initial target on following through lower stands at the 1.4049 level , its May 22’09 high where we expect the combination of the mentioned level and its strong psycho support at the 1.4000 level to provide support and turn the pair higher.However,if this fails to play out, a move lower targeting the 1.3738 level should follow. Its daily RSI has turned lower supporting this view. On the upside, EUR’s initial resistance lies at the 1.4330/61 level, its Dec 29’08/Jun 2’09 highs with a break through there paving the way for a run at the 1.4718 level, its Dec 18’08 high. Above that level will trigger further upside gains towards the 1.4867 level, its Sept 22’08 high. On the whole, EUR retains its medium term bullishness but is now facing corrective downside pressure.

Support Comments

1.4167 May 29’09 high

1.4049 2009 high

1.4000 Psycho Level

Resistance Comments

1.4363 Dec 29’08 high

1.4867 Sept 22’08 high

1.4900 psycho level

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EURUSD: Begins Corrective Pullbacks
EURUSD: A clean wipe out of its Tuesday gains was seen on Wednesday suggesting as alluded to in our past analysis corrective pullbacks. Our initial target on following through lower stands at the 1.4049 level , its May 22’09 high where we expect the combination of the mentioned level and its strong psycho support at the 1.4000 level to provide support and turn the pair higher.However,if this fails to play out, a move lower targeting the 1.3738 level should follow. Its daily RSI has turned lower supporting this view. On the upside, EUR’s initial resistance lies at the 1.4330/61 level, its Dec 29’08/Jun 2’09 highs with a break through there paving the way for a run at the 1.4718 level, its Dec 18’08 high. Above that level will trigger further upside gains towards the 1.4867 level, its Sept 22’08 high. On the whole, EUR retains its medium term bullishness but is now facing corrective downside pressure.
Support Comments
1.4167 May 29’09 high
1.4049 2009 high
1.4000 Psycho Level
Resistance Comments
1.4363 Dec 29’08 high
1.4867 Sept 22’08 high
1.4900 psycho level


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