EURUSD: Although EUR reversed its intra day upside gains to close lower at 1.4703 on Thursday, as long as its LT rising trendline continues to provide support and its daily stochastics is trending higher, odds are for corrective nearer term recovery off the 1.4570 level (Aug 26’08 low) to be seen. In such a case, the 1.4814 level, its August 12’08 low will be targeted before the 1.4967/51 zone (its range highs from Nov’07 and Jan’08/.618 Ret) and then the 1.5304/1.5285 zone (May/Jun’08 lows). These last two key levels are expected to turn the pair lower and resume its recent weakness. On the downside, breaking back below the 1.4728 level, its .786 Ret (1.4310-1.6038 rally), its August 19’08 low at 1.4630 and its LT rising trendline currently at 1.4595 is required to annul our nearer term upside recovery view. Below the latter will set the stage for a decline towards its Aug 26’08 low at 1.4570 with a loss of there opening the door for further weakness towards the 1.4364 level, its Jan 22’08 low. On the whole, while the pair continues to maintain its bearish medium term structure, corrective strength in the nearer term could be seen.

SupportComments
1.4728.786 Ret
1.4630Aug 19’08 low
1.4595/65LT Rising trendline/Aug 26’08 low/Range Break Price Target
1.4364Jan 22’08 low

ResistanceComments
1.4814August 12’08 low
1.4967/55Nov’07 and Jan’08 highs
1.5304/1.5285May/Jun’08 lows