EURUSD- While the pair maintains its upside risk in the medium term, weakness in the nearer term may be seen allowing EUR to embark on a corrective pullback from its recent upmove.This view is also supported by its daily indicators which are in overbought territory though still pointing higher. With its first negative day registered on Thursday since its sharp rise off the 1.4125 low, odds are for the above view to play out nearer term while its weekly rising channel continues to provide resistance. Downside targets are located at the 1.4342/63 zone, its Oct 22’07 high/1.272 Fib Ext. (daily chart) and its 1.272 Ext. (monthly chart)/Sept 28 high at 1.4250/81 with the former expected to provide strong support having lost its resistance roles. Turning below the 1.4250/81 zone will open up scope for additional lower prices aiming at the 1.4162/39 area, its Oct 22’95/Sept 25’07 highs/daily rising channel and then the 1.4033/00 levels, representing its Oct 05 & 09’07 lows/psycho level. On the upside, a decisive penetration of its weekly channel top and its YTD high at 1.4475/1.4504 is required to trigger the continuation of its medium term uptrend towards its Mar’1995 at 1.4535 followed by its psycho level at 1.4600.On the whole, any weakness seen in this pair is corrective of its recent run to the upside and the pair should resume its upmove on ending such corrections.
| Oct 22’07 high/1.272 Fib Ext. (daily chart) |
| 1.272 Ext. (monthly chart)/Sept 28’07 high |
| 1.618 Fib Ext (Daily Chart)/Oct 22’95/Sept 25’07 highs |
| Oct 05 & 09’07 lows/psycho level |
| 1.618 Fib Ext. /weekly rising channel top |
| Mar’1995 high |
| Psycho Level |
