EURUSD: Outlook for the pair remains higher as it looks to convincing break and hold above its Jun 01’10 high at 1.2353. A decisive cut through there will clear the way for a further run at the 1.2451 level, its May 28’10 high and next its May 21’10 high at 1.2671. This view remains valid while EUR continues to trade above the 1.2000/1.1875 zone. Its daily studies which are bullish and pointing higher are supportive of this view. Alternatively, a break and hold below the 1.1875 level, the 2010 low will have to occur to annul its corrective recovery view and bring further weakness towards its Jan’2006 low at 1.1801. A violation of there will open the door for more declines towards its major support at 1.1640 established in 2005. All in all, having triggered a corrective recovery, the pair now looks to build on those gains towards the 1.2353/1.2451 levels.
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