EURUSD-EUR turned sharply higher (1.4529) putting in its fourth consecutive weeks of upside gains to close the week at 1.4509.This upside offensive is coming on the heels of a one-day weakness seen on Wednesday. As a break and close above its weekly rising channel has now been validated on both daily and weekly closing basis, risks on the upside are now seen towards the 1.4535 level, which represents its 1995 high with a pullback if seen targeting the broken rising channel top now at 1.4485.Beyond the former(1.4535) will set the stage for a run on the upside towards 1.4918, which is the location of its 1.618 Fib Ext(monthly).While price momentum remains to the upside in both the medium and longer term, nearer term corrective pullbacks may be seen as its momentum indicators are now overbought. In such a case, a loss of the 1.4485 level will turn focus to the downside towards the 1.4342/63 zone, its Oct 22’07 high/1.272 Fib Ext. (daily chart) at first and then its 1.272 Ext. (monthly chart)/Sept 28 high at 1.4250/81 with the former now expected to reverse roles and provide support. A turn below there will open up scope for additional lower prices targeting the 1.4162/39 area, its Oct 22’95/Sept 25’07 highs and next the 1.4033/00 levels, representing its Oct 05 & 09’07 lows/psycho level. On the whole, with a decisive break through its weekly rising channel seen, EUR is likely to head towards the 1.4535 area and beyond.

Directional Bias:

Nearer Term –Bullish

Short Term -Bullish

Medium Term –Bullish

Performance in %:

Past Week: +0.74%

Past Month: +1.39%

Past Quarter: +5.40%

Year-To-Date: +9.94%

Weekly Range:

High -1.4529

Low -1.4375

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