EURUSD: Corrective Recovery On The Cards.
EURUSD: The pair reversed its entire Tuesday losses on Wednesday to close higher at 1.2430. Although upside attempts are being rebuffed by the bears, as long as the pair can hold above its 2010 low at 1.2142, we see a nearer term recovery risk shaping up. If this occurs, we will be looking for a move higher towards its 2009 low at 1.2456 with a break of there allowing for more strength towards the 1.2520 level, May 06’10 low. A reversal of roles should occur here and turn the pair back down again in line with is broader weakness. Alternatively, if the 1.2142 level breaks further decline should follow towards the 1.2121 level, its .50. Fib Ret (0.8225-1.6037 rally, monthly chart) ahead of the 1.2000 level, its big psycho level. A breather is expected here to turn the pair higher.
This is an excerpt from FXT Technical Strategist Plus (The Professional Suite package), a 7-currency model analysis utilized by all levels of traders. View the service information.