EURUSD: While the pair maintains its broader medium term bearishness following its weakness triggered off the 1.5143 level, a recovery activated from its 2010 low at 1.3266 has halted the said trend and pushed it to a high of 1.3691 on April 12’10. With that said, the corrective recovery from the 1.3266 to 1.3691 levels is now under threaten as a failure to follow through higher on its Wednesday strength saw it crashing to the downside today. That sell off has turned our attention to a key support zone at the 1.3537/1.3498 levels (its April 05’10/its April 09’10 highs).How will the pair fare at these levels and what happens if it gives in? We have been watching those levels since the pair gapped higher on Monday and its return to that level could mean a close of that gap before heading back up again. That is one possibility. The other is a decisive break of that level implying a return to its 2010 low at 1.3266 level. This level is the trigger for the resumption of its broader medium term downtrend and an eventual breach of there will put pressure on its Jun 03’09 low at 1.3211 and its big psycho level located at 1.3000. However, if the 1.3527/1.3498 levels hold as supports and turn the pair higher then the major level to watch on the upside will be its April 12’10 high at 1.3691 and its Mar 17’10 high at 1.3816 followed by its Feb 03’10 high sited at 1.4025. In a nutshell, we are looking for either a corrective recovery continuation or a return to the 1.3266 level.
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
This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are those of FXTechstrategy.com 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 FXTechstrategy.com incurs any responsibility. FXTstrategy.com 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
