EURUSD- An extension of the pair’s decline off the 1.4921 high printed in Mid-Jan’08 continued on Thursday pushing the it to as low as 1.4588 before recovering briefly to close above its daily 50 ema located at 1.4619.An impending double top chart pattern is hanging in the throat of this pair suggesting a continued weakness through its Jan 01’08 low/.618 Ret (1.4310-1.4921 rally) at 1.4577/45 could accelerate downside losses towards the 1.4310 level, its Dec 20’07 low with a break through there triggering the mentioned pattern. Below the 14310 level will set the stage for further downside pressure towards the 1.4278 area, its Sept 28’07 high and then the1.4014/00 zone, its Oct 09’07 low/psycho level. The daily studies are positive and declining implying further weakness. On the upside, initial targets are seen at the 1.4751/52 zone, its Nov 09’07/Dec 11’07 and the 1.4823 level, representing its Jan 04’08 high followed by its psycho level at 1.5000 ahead of the 1.5155 level, its 1.618 Fib Ext.On the whole, although the current weakness is corrective of the pair’s run from the 1.4310 low, continued weakness could see it retargeting that level with a possible break below it envisaged. The medium and longer term trends still remain to the upside at this stage.

Support         Comments
1.4577         Jan 01’08 low
1.4310         Dec 20’07 low
1.4278         Sept 28’07 high
1.4014/00     Oct 09’07 low/psycho level

Resistance     Comments
1.4823         Jan 04’08 high
1.4751/52     Nov 09’07/Dec 11’07 Highs
1.4967         2007 Peak
1.5000         Psycho Level