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EURUSD: Erodes Its Sideways Trading Range, Turns Focus To The 1.4967/51 Levels.

Mon, Aug 11 2008, 13:34 GMT
by Mohammed Isah

FXTechstrategy


EURUSD- EUR experienced its biggest weekly losses since May’1995 decisively breaking and closing below its three month range and taking out its key support at the 1.5304/1.5285 zone (May/Jun’08 lows) in the process to end the week at 1.5008.Having lost the mentioned key support, attention has now turned to its strong weekly chart level at the1.4967/51 zone, representing its range highs from Nov’07 and Jan’08 with a trade below there exposing its .786 Ret(1.4310-1.6038 rally) at 1.4728..Beyond there will put the pair in position to head further lower targeting its range breakout price objective at 1.4565, established by measuring the width of the range and projecting it from the break out point. This breakout price target remains the same whether it is interpreted as a double top or a rectangle pattern. Resistance on any recovery from the present price level will now aim at its invalidated range bottom at the 1.5304/1.5285 zone (May/Jun’08 lows) ahead of the 1.5468 low, its Jun 23’08 low and then its July 24’08/July 30’08 lows at 1.5527/21.Its weekly RSI and Stochastics continue to trend lower suggesting further declines though those (studies) of the daily chart are oversold, a sign that a bounce may occur. On the whole, having broken and maintained below the 1.5304/1.5285 zone, EUR has now opened the door for a run at the1.4967/51 zone or even lower.

Directional Bias:
  • Nearer Term –Bearish
  • Short Term –Bearish
  • Medium Term –Mixed

Performance in %:

  • Past Week: -3.63%
  • Past Month: -1.11%
  • Past Quarter: +0.01%
  • Year To Date:+2.89%

Weekly Range:

  • High -1.5631
  • Low -1.4998


Also in this issue:

  • GBPUSD: GBP Declines Through The 1.9364/37 Zone, Poised To Weaken Further
  • USDJPY: Clears The 108.59/61 zone, Now Faces A Band Of Overhead Resistance

Published on  Mon, Aug 11 2008, 13:37 GMT


Archive

FXTechstrategy http://www.fxtechstrategy.com/ | m.isah@fxtechstrategy.com

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