EURUSD: Faces Downside Pressure.
EURUSD: A second day of weakness saw the pair following through lower on its marginal losses the past week and leaves risk for further downside. It is presently trading below its last week low at 1.2208 level with a close below there calling for more declines towards the 1.2162 level, its Jun 14’10 low. A loss of there will open the door for further weakness targeting the 1.1875 level, the 2010 low. A firm break and close below there will have to occur to annul its corrective recovery bias and bring further weakness towards its Jan’2006 low at 1.1801 with a violation of that level paving the way for more declines towards its major support at 1.1640 established in 2005. However, its present weakness remains corrective of its rally from the 1.1875 to 1.2466 levels suggesting a retarget of the 1.2466 level, its Jun 21’10 high on ending that pullback. A firm break above the 1.2466 level will set the stage for more strength targeting its May 21’10 high at 1.2671 and then its psycho level at 1.3000. This view remains valid while the pair continues to trade above the 1.2000/1.1875 zone.

EURUSD: Faces Downside Pressure.

EURUSD: A second day of weakness saw the pair following through lower on its marginal losses the past week and leaves risk for further downside. It is presently trading below its last week low at 1.2208 level with a close below there calling for more declines towards the 1.2162 level, its Jun 14’10 low. A loss of there will open the door for further weakness targeting the 1.1875 level, the 2010 low. A firm break and close below there will have to occur to annul its corrective recovery bias and bring further weakness towards its Jan’2006 low at 1.1801 with a violation of that level paving the way for more declines towards its major support at 1.1640 established in 2005. However, its present weakness remains corrective of its rally from the 1.1875 to 1.2466 levels suggesting a retarget of the 1.2466 level, its Jun 21’10 high on ending that pullback. A firm break above the 1.2466 level will set the stage for more strength targeting its May 21’10 high at 1.2671 and then its psycho level at 1.3000. This view remains valid while the pair continues to trade above the 1.2000/1.1875 zone.

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