EURUSD: EUR saw a sharp recovery Tuesday reversing its intra day losses to close higher, its meaningful positive close since its decline through key support levels at the 1.4967/51 zone (its range highs from Nov’07 and Jan’08/.618 Ret) and the 1.5302/1.5283 zone, its May/June’08 lows. This technical development now leaves the pair targeting its August 12’08 low at 1.4814 where a break will aim at stronger levels at the 1.4967/51 zone and the 1.5302/1.5283 zone. Recoveries are seen as corrective as its broader bias remains lower. On the downside, targets are located at the 1.4728 level, its .786 Ret (1.4310-1.6038 rally) and its Tuesday low at 1.4630 with a break below there paving the way for a decline towards its range breakout price objective at 1.4565 and then the 1.4364 level, its Jan 22’08 low. Higher level charts remain supportive of this view. On the whole, our consolidation to corrective bounce call remains in effect though as indicated it will be corrective of its medium term bearishness.
| Support | Comments |
| 1.4728 | .786 Ret |
| 1.4570/65 | LT Rising trendline/Range Break Price Target |
| 1.4364 | Jan 22’08 low |
| 1.4014 | Oct’07 low |
| Nov’07 and Jan’08 highs |
| Weekly 50 ema/.618 Ret (1.4438-1.6037 rally |
| May/June’08 lows |
