EURUSD-EUR maintained a fifth consecutive weekly close on Friday since bottoming out and turning higher in early Oct’07 off the 1.4015 low before taking out the 1.4503/35 zone, which marks its 1995 high/weekly rising channel top in early Nov’07. The pair printed its highest price at 1.4752 on Friday before giving back most of those gains to close the week at 1.4679.This development now leaves the pair’s medium and longer term outlook pointing to the upside with risk of further price gains towards a stronger resistance at its 1.618 Fib Ext (monthly)/psycho level at 1.4918/1.5000.Other technical levels before here stand at the 1.4730/52 zone, its Nov 07 & 09 07 high ahead of its psycho level at 1.4800.However,while medium term upside remains intact, with the shooting star(daily chart) candle pattern top(1.4730) still providing resistance as evidenced by Friday’s price failure at that level and overbought momentum condition still a factor, odds are for a corrective phase in the nearer term to prevail. In such a case, its nearby support resides at the 1.4600 level, its psycho level followed by the 1.4511/35 zone, its 1995 high/ broken weekly rising channel top where a cap is expected before the pair heads higher again. Below here if seen, will open up scope for downside weakness towards its .38291.4015-1.4752 rally) at 1.4470 and possibly lower targeting the 1.4342/82 zone, its Oct 22’07 high/.50 Ret. On the whole, while the pair’s broader bias remains to the upside, the risk of a nearer term corrective pullbacks remains likely.

Directional Bias:

  • Nearer Term –Bullish
  • Short Term -Bullish
  • Medium Term –Bullish

Performance in %:

  • Past Week: +1.17%
  • Past Month: +1.39%
  • Past Quarter: +5.40%
  • Year-To-Date: +11.23%

Weekly Range:

  • High -1.4752
  • Low -1.4444