EURUSD- As its recent run to the upside has made it vulnerable to corrective pullbacks in the nearer term as evidenced by its oversold condition and the presence of two negative candle patterm (doji and shooting star)on the daily chart, the pair was seen heading lower in early trading today. This is coming on the back of a fresh 2007 high at 1.4751 printed on Friday.On further weakness, the first downside objective is located at the 1.4511/35 zone, its 1995 high/ broken weekly rising channel top. This zone is expected to reverse roles and provide support. If a push through here occurs, odds for further price acceleration towards its .382 Ret (1.4015-1.4752 rally) at 1.4470 and probably lower targeting the 1.4342/82 zone, its Oct 22’07 high/.50 Ret. Its daily RSI just turned below its overbought zone supporting this view.However, a climb back above the 1.4600 level, its psycho level followed with a break and hold above another psycho level at 1.4700 will pave the way for a run at its 2007 high at 1.4751 and possibly higher towards the 1.4918 level, its 1.618 Fib Ext (monthly chart) and next the 1.5000 level, marking its big psycho level. The pair’s medium and longer term trend remain to the upside supporting the upside argument. All in all, while the pair looks to weaken nearer term it continues to retain upside bias in the medium term.

  • AUDUSD: Tumbles Off Recent Highs, Looks To The 0.8870 Level For Support
SupportComments
1.4511/35Broken Rising Channel Top/Mar’1995 high
1.4463/961.618 Fib Ext.(daily chart) /weekly rising channel top
1.4342/63Oct 22’07 high/1.272 Fib Ext. (daily chart)

ResistanceComments
1.4600Psycho Level
1.4700Psycho Level
1.4800Psycho Level
1.49181.618 Fib Ext (monthly)