EURUSD: Resistance At 1.3259/98 LevelLooks To Turn Back EUR.
EURUSD: Although reversal of its intraday losses offthe 1.2527 low Tuesday saw EUR wipe out most of its last week’s losses and those of Monday, as long as such gains is capped by the 1.3259/98 area, its Oct 10’08 low/Oct 30’08 high, the pair looks to turn lower and continue its medium term downtrend. Above the mentioned resistance though not envisaged at the current price levels will aim at the 1.3666 level, its Dec’04 high. Its daily stochastics has turned higher suggesting a further strength. Alternatively, supports are now located at the 1.2728 level, its Oct 22’08 low and the 1.2484 level, its Oct’06 low. Below the latter will expose the 1.2527 level, itsNov 04’08 lowand then its YTD low at 1.2330.This level remains the trigger for the resumption of the pair’s medium term decline off the 1.6038 high which is now on hold. A loss of this strong support (1.2330) will target lower prices towards the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) before the 1.1827 level, its Mar’06 low and next its Nov’05 low at 1.1640.On the whole, our bias remains to the downside medium term and the 1.3259/98 area should limit upside incursions and turn the pair lower again in line with that view.
SupportComments
1.2728Oct 22’08 low
1.2484 Oct’06 low
1.2330/24 Oct 28’08 low/Jan/April’06 highs
1.1827Mar’06 low
ResistanceComments
1.2866Jan’07 low
1.3058/05Oct 23’06 high/.618 Ret (0.8231-1.6038 rally, monthly chart)
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