EURUSD- Following its sell off ahead of the 1.4967 high (2007 high) the past week and its subsequent break through layers of support levels,EUR remains on the defensive as further weakness continues to be envisaged. As long as the pair continues to maintains below its recently invalidated rising trendline,chances are for lower prices to be seen towards its Jan 01’08 low/.618 Ret (1.4310-1.4921 rally) at 1.4577/45 followed by the 1.4446 level, its .786 Ret ahead of its Jan 22’08 low at 1.4364.With daily and weekly indicators now heading lower, the pair could follow to the downside targeting 1.4310 level, its Dec 20’07 low or even lower.Alternatively,breaking and trading above its invalidated trendline followed with a climb back above the 1.4751/52 zone, its Nov 09’07/Dec 11’07 highs is required to reduce its downside pressure and turn the higher towards the 1.4921 level, its Jan 15’08 high and then its 2007 peak at 1.4967.Retargeting the latter will activate the resumption of its medium term uptrend. On the whole, while the present weakness remains consistent with its medium term uptrend corrective moves, a break and hold above the 1.4967 level is required to prompt that trend.

Support               Comments

1.4577                 Jan 01’08 low

1.4446/86            .786 Ret/daily 100 ema

1.4310                 Dec 20’07 low


Resistance         Comments

1.4751/52            Nov 09’07/Dec 11’07 highs

1.4921                 Jan 15’08

1.4967                 2007 Peak

1.5000                 Psycho Level