HIGHLIGHTS:

EURUSD: Overall Uptrend Remains Intact - Despite its inability to head higher on Tuesday, EUR still retains its medium term bullish structure suggesting its current price hesitation is corrective.

USDJPY: Setback Towards The 88.72/00 Levels Seen - The pair was seen hesitating today failing to follow through higher on its Tuesday recovery. That failure could see the pair weaken …


EURUSD

EURUSD

EURUSD: Overall Uptrend Remains Intact.

EURUSD – Despite its inability to head higher on Tuesday, EUR still retains its medium term bullish structure suggesting its current price hesitation is corrective. Though currently vulnerable following its sell off on Tuesday, a break below its longer term rising trendlinecurrently at 1.4716 and the 1.4625 level, its Nov 03’09 low must occur to put our medium term upside view on hold and bring further downside pressure to the downside at its Oct 02’09 low at 1.4479. However, we expect a combination of the first mentioned levels(1.4716 and 1.4625) to provide strong support if tested and turn the pair back up. To the topside, the pair requires a decisive break and hold above its YTD high at 1.5062 to resume its MT uptrend towards the 1.5082 level, its Aug 10’08 high and next its 1.5283 level, its May 04’08 low


USDJPY

USDJPY

USDJPY: Setback Towards The 88.72/00 Levels Seen

USDJPY – The pair was seen hesitating today failing to follow through higher on its Tuesday recovery. That failure could see the pair weaken towards its Nov 17’09 low at 88.72 where a break if seen will drive it further lower towards its Oct 07’09 low at 88.00.
Below there will turn attention to its Jan’09 low at 87.10.The daily RSI remains supportive of this view as it is bearish and pointing to the downside.
Alternatively, in order to reverse its present downside vulnerability, USDJPY must first recapture the 91.31 level, its Nov 04’09 high followed with the 92.27 level, its Oct 27’09 high. Above the latter will clear the way for a run at its Sept 07’09 high at 93.29. We retain our short term bearish view on this pair and see any recovery higher as corrective of that trend. On the whole, having broken its key support threats remain lower for a decline towards the 88.72/00 levels