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EURUSD: Broader Bias Points To The Upside, Risk Points To The 1.3322 Level.
EURUSD: We continue to maintain our upside bias on EUR as it looks to strengthen further nearer term. It closed higher the past after testing a high of 1.3322 level. A recapture of that level will call for a run at the 1.3375 level, its Dec 12’12 level. On further price extension, EUR should target the 1.3484 level, its Dec 05’2011 high and possibly higher towards its Dec 02’2011 high at 1.3547. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, on any pullback, the 1.3025/26 levels will be targeted where a reversal of roles as support is likely to occur and turn the pair back up. However, if that level is taken out, further declines is expected towards the 1.2856/75 level, its Dec 29’2011 low/Jan 2011 low. Further down, support lies at the 1.2624 level where a loss will resume its medium term weakness and aim at the 1.2587 level, its Aug 2010 low. All in all, EUR continues to retain its corrective recovery tone despite a hitch the past week.
EURUSD: Violates Key Support, Set To Weaken Further
EURUSD: With a fourth week of declines pushing the further lower the past week, pressure is now building up on its key support located at the 1.3144 level, its Oct’2011 low. This is coming on the heels of a loss of its Oct 10’2011 low at 1.3377. On a violation of the 1.3144 level, the pair will aim at its psycho level at 1.3000. We may see a respite and a possible recovery higher if this level is seen. Its weekly RSI is bearish and pointing lower suggesting further weakness. On the other hand, on any recovery higher, the pair should target the 1.3419 and 1.3611 levels. However, it will have to break and hold above the 1.3866 level, its Nov 04’2011 high and the 1.4241 level, its Oct 27’2011 high to end its present bear threats and bring further gains towards the 1.4342 level, its daily falling trendline. Further out, resistance resides at the 1.4550 level, representing its Aug 29’2011 high. All in all, with the short term downtrend intact, EUR looks to weaken further in the new week.
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