EURUSD- While the top of its shooting star candle pattern now acting as resistance needs to be violated to reduce the potential of its efficacy, an early morning run today at that zone suggests its vulnerability. Holding at the present level implies that an extension of its recent upside gains is likely initially towards its psychological resistance at 1.4800 and then the 1.4918 level, which represents its 1.618 Fib Ext (monthly chart) followed by the 1.5000 level, marking its big psycho level. Although this remains supported by its medium and longer term outlook, topping out momentum indicators continue to suggest that corrective pullbacks could be seen before pushing to the upside again. In that case, its psycho support at 1.4600 and its Mar’1995 high at 1.4535 are expected revert to support and turn it higher but on a loss of those levels, a deeper correction may follow towards its 1.618 Fib Ext. (daily chart) / broken weekly rising channel top at 1.4463/96 and next the 1.4342/63 zone, its Oct 22’07 high/1.272 Fib Ext. (daily chart).On the whole, medium term uptrend continue to prevail suggesting any weakness at this stage remains corrective.
| Psycho Level |
| Nov 01’07 high/Mar’1995 high |
| 1.618 Fib Ext.(daily chart) /weekly rising channel top |
| Oct 22’07 high/1.272 Fib Ext. (daily chart) |
| Psycho Level |
| Psycho Level |
| 1.618 Fib Ext (monthly) |
