EURUSD: EUR weakened Tuesday failing to follow through to the upside on its Monday gains and turning lower ahead key resistance coming in at its Nov’07/Feb’08 congestive highs at 1.4951/67 to close at 1.4686.The said failure now sees the pair targeting the 1.4542/71 zone (Aug 26’08/Sept 18’08 lows) with a fall through opening the door for the pair to aim at the 1.4366/10 zone, its Jan’08/Dec’07 lows before its Sept 16 low at 1.4073 and subsequently the 1.4015 level, its Oct’07 low. Decisively penetrating the latter will signal a move towards its July’07/Sept’08 lows at 1.3882/52 and possibly lower.Alternatively, limiting its corrective recovery pullback to the 1.4542/71 zone will suggest another attempt at the upside targeting the 1.4867 level, its Sept 22’08 followed by the 1.4951/67 levels and later its May/Jun’08 lows at 1.5263/85.The daily stochastics continues to support this view though it is just stepping into overbought zone. On the whole, although EUR’s corrective recovery off the 1.3882 level is not over yet, another attempt at the upside could be capped by the 1.4951/67 levels before the pair turns lower.

Support        Comments

1.4542/71     Aug 26’08/Sept 18’08 low

1.4366/10     Jan’08/Dec’07 lows

1.4073          Sept 16 low

1.4015          Oct’07 low

Resistance    Comments

1.4867           Sept 22’08

1.4951/67      Nov’07/Feb’08 congestive highs

1.5263/85      May/Jun’08 lows