Declining Channel Puts Nearer Term Bias To The Downside
EURUSD: Although our overall bias remains higher in the medium term, corrective weakness started at the 1.4339 level, its 2009 high continues to put the pair in a vulnerable position reversing its Friday gains and following through to the downside on its shooting star formation today. This development now suggests a decline towards its strong support standing at the 1.3738 level, its Mar 19’09 high where a break and hold will highlight lower prices towards the 1.3479 level, its weekly 200 ema. Its bearish RSI remains supportive of this view. On the contrary, though our overall medium term outlook remains to the upside on the pair, we have to see a decisive break and hold above the 1.4339 level to reverse the present downside threats and bring gains higher towards the 1.4719 level, its Dec 18’08 high and then the 1.4867 level, its Sept 22’08 high. On the whole, though biased to the upside in the medium term, EUR continues to be challenged by nearer term corrective weakness.

Declining Channel Puts Nearer Term Bias To The Downside

EURUSD: Although our overall bias remains higher in the medium term, corrective weakness started at the 1.4339 level, its 2009 high continues to put the pair in a vulnerable position reversing its Friday gains and following through to the downside on its shooting star formation today. This development now suggests a decline towards its strong support standing at the 1.3738 level, its Mar 19’09 high where a break and hold will highlight lower prices towards the 1.3479 level, its weekly 200 ema. Its bearish RSI remains supportive of this view. On the contrary, though our overall medium term outlook remains to the upside on the pair, we have to see a decisive break and hold above the 1.4339 level to reverse the present downside threats and bring gains higher towards the 1.4719 level, its Dec 18’08 high and then the 1.4867 level, its Sept 22’08 high. On the whole, though biased to the upside in the medium term, EUR continues to be challenged by nearer term corrective weakness.

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