EURUSD: Likely Loss Of The 1.3259 Level Seen, Medium Term Decline Towards the 1.3058 Level Envisaged
EURUSD: Failed recovery off the 1.3786/69 levels(Oct 09 & 14’08 highs) continues to yield losses pushing EUR lower to close at 1.3344 on Monday and opening Tuesday session on the downside attacking the 1.3259 low. A decisive break and hold below here is likely with risk towards its .618 Ret (0.8231-1.6038 rally, monthly chart) at 1.3058 expected and below there targeting the 1.2980 level, its Jun’06 high and then its Jan’07 low at 1.2866.Daily studies are bearish and pushing lower supporting this view. Minor resistance at the 1.3346 level printed on Oct 16’08 is expected to serve as initial upside target on a bounce from the present level where a break could bring further gains towards the 1.3682/66 level, its April’07/Dec’04 highs and later the 1.3769/86 level. This zone should contain such gains and turn the pair lower again. On the whole, with the 1.3259 level being tested and likely to be invalidated, resumption of the pair’s medium term downtrend will trigger a fresh leg of weakness.
SupportComments
1.3259 YTD low
1.3058.618 Ret (0.8231-1.6038 rally, monthly chart)
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