EURUSD: EUR recovered from an intra day low of 1.5552 Wednesday to close the session at 1.5683.This is coming on the heels of a failure at 1.5895(Mar 31’08) level and a subsequent follow-through lower on Tuesday. While both the medium and longer term trends remain to the upside, a clean penetration and hold above the 1.5895/1.5904 levels, representing its 2008 peaks is required to resume that trend and prevent the present downside threat. In such a case, its psycho resistance at 1.6000 and the 1.6100 level, another psycho level.Conversely, if the pair fails to turn above the 1.5895/1.5904 levels lower prices are envisaged towards the 1.5455/95 level, its psycho level/Mar 07’08 followed by its Mar 24’08 low/.382 Ret (1.4440-1.5904 rally) at 1.5344/42 ahead of the 1.5174 level, its .50 Ret. Its daily stochastics continues to point to the downside. On the whole, the medium and longer term bullish outlook continues to hold while nearer term consolidation to pullbacks could be seen.
| Psycho Level/Mar 07’08 |
| .382 Ret/Mar 24’08 low. |
| .50 Ret |
| Psycho Level |
| Psycho Resistance |
| Mar 31’08 high/2008 Peak |
| Psycho Level |
