Daily Technical Strategist

EURUSD: EUR Collapses, Turns Back Below The 1.5842 Level.

Fri, Jul 4 2008, 09:02 GMT
by Mohammed Isah

FXTechstrategy


EURUSD: EUR collapsed off its intra day high of 1.5908 Thursday through the 1.5842 level, its Jun 09’08 high to close the session at 1.5685.Overbought unwinding has been triggered as its stochastics has turned lower from its overbought territory indicating that lower prices could be seen in the days ahead. In such a case, the 1.5650 level, representing its Jun 20’08 high will be initially targeted accompanied by the 1.5510 level, its April 03’08 low ahead of the 1.5360/64 zone, its .382 Fib Ret/ Jun 05’08 low. Below there will leave the pair pushing further lower towards its May 08’08 low at 1.5283 and then its .50 Ret (1.4309-1.6018 high) at 1.5164.On the other hand, a return back above the 1.5842 level followed with a break above its mentioned intra day high at 1.5908 is now required to bring upside gains to its YTD high at 1.6018.On the whole, while the present weakness looks to head further lower, doing so within its sideways trading will suggest a move possibly towards the 1.5283 level.

Support Comments
1.5650 Jun 20’08 high
1.5593 May 06’08 high
1.5510 April 03’08 low
1.5360/64 zone, its .382 Fib Ret/ Jun 05’08 low

Resistance Comments
1.5817/42 high May 27’08/Jun 09’08
1.5895/I 5912 Mar 31’08 high/April 10’08 high
1.6018 YTD high

Published on  Fri, Jul 4 2008, 09:05 GMT

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