EURUSD: EUR Enters Into A Corrective Mode, Targets The 1.3005/58 Area.
EURUSD: Nearer term consolidation to corrective phases now seen in the entire G10 currency complex and our own 7-currency model analysis now suggest that EUR should head further higher towards the 1.3005/58 area, its Oct 23’08 high/.618 Ret (0.8231-1.6038 rally, monthly chart) following its corrective bounce off the 1.2330 level Tuesday. We should see a cap at the 1.3005/58 area or even the 1.3259 level followed with the pair turning south again in alignment with its broader medium term weakness. In the meantime, loss of price momentum from the current upmove if seen is expected to target the 1.2728 level, its Oct 22’08 low with a failure of there setting the stage for a decline towards the 1.2484 level, its Oct 06 low and then its Jan/April’06 highs at 1.2334/24.Break and close below the latter is required to trigger the resumption of the pair’s medium decline off the 1.6038 high the 1.1827 level, its Mar’06 low and eventually the 1.1640 level, its Nov’05 low. On the whole, EUR’s medium term downtrend is expected to resume on ending its present corrective upmove.
SupportComments
1.2728Oct 22’08 low
1.2484 Oct’06 low
1.2334/24Jan/April’06 highs
1.1827Mar’06 low
ResistanceComments
1.2866Jan’07 low
1.2980Jun’06 high
1.3058.618 Ret (0.8231-1.6038 rally, monthly chart)
This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are those of FXTechstrategy.com own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which FXTechstrategy.com incurs any responsibility. FXTstrategy.com does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report.
Disclaimer: All information on this web site is subject to change. The use of this web site constitutes acceptance
of our user agreement. All publisher financial articles at
FXtree.com are those of the individual authors and do not represent trading recommendations
of FXtree.com or its staff.
