During 2009, the pair traded among the lowest at 1.2455 and the highest at 1.5144, and with applying Fibonacci ratios on the direction, that was generally bullish, we can see that the pair currently trades above 38.2% at 1.4125 and above the 50% at 1.3800; in role this indicates the possibility for an upside direction to prevail in 2010; RSI is trading in oversold areas and that increases the likelihood for the upside direction to return. The bullish 2010 outlook will remain valid as far as trading is above 1.3800 while 61.8% correction at 1.3490 provides further support for the trend.
We can see on the same chart a bullish pattern, where the neckline is nearly at 38.2% level mentioned above, and this patter targets areas around 1.5410 meaning that stability above 1.4125 will keep the general upside move valid influenced by this classical pattern.
Trading below 100 Days MA provides negativity for the direction, while breaching 23.6% at 1.4515 accelerated the downside move as seen on the chart above, and for the upside wave to be confirmed the pair must return to trade above 100 MA which currently stands at 1.4615.
