EURUSD: Declines Activated At The 1.4719 Level Set To Continue- EUR ended the week on the downside at 1.3840 following its test and failure at the 1.4363 level forming a shooting star candle pattern( a top reversal signal) the past week …

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Declines Activated At The 1.4719 Level Set To Continue.

EURUSD- EUR ended the week on the downside at 1.3840 following its test and failure at the 1.4363 level forming a shooting star candle pattern( a top reversal signal) the past week. Although the pair closed the year lower with YTD performance of 4.22% which is now supported by the above mentioned nearer term declines, short term recovery higher from the pair’s overall declines off the 1.6038 level is still in force. This indicates that the present price action remains corrective of the said short term uptrend. A follow-through to the downside on the past week’s weakness is expected to drive EUR lower towards the 1.3785 level, its Oct 09’08 high ahead of the 1.3531 level, its Oct 20’08 high with a loss of there extending price losses towards the 3298 level,Oct 30’08 high. On the upside, strong resistance levels situated at the 1.4363 and the 1.4719 levels should hold off bulls’ incursions and turn the pair lower .However, a trade above there is will put the pair in position to head further higher towards the 1.4867 level, its Sept 22’08 high. Its weekly stochastics remains bullish and pointing higher supporting its ST uptrend. On the whole, with rejection of higher prices continuing to be seen, nearer term declines started at the 1.4719 level looks to head further lower.

Directional Bias:

Nearer Term –Bearish

Short Term –Bullish

Medium Term –Bearish

Performance in %:

Past Week: -1.47%

Past Month: +10.01%

Past Quarter: -1.05%

Year To Date: -4.22%

Weekly Range:

High -1.4363

Low -1.3840