EURUSD: Triangle Downside Resolution Keeps Pressure On The 1.2330 Level.
EURUSD: With continued decline off the 1.3298 high and a print of a new low at 1.2477 following a break out of its 4 hourly triangle , EUR is now set to weaken further towards its YTD lowat 1.2330.We maintain our medium term outlook for weakness through this level accelerating towards the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) with price extension aiming at the 1.1827 level, its Mar’06 low and ultimately its Nov’05 low at 1.1640.The daily RSI and Stochastics are in alignment with this view as they are both heading lower.Alternatively,if any form of recovery occurs at this stage, the 1.2728 level, its Oct 22’08 low will be targeted ahead of the 1.3058/05 level, its Oct 23’06 high/.618 Ret (0.8231-1.6038 rally, monthly chart) along with the 1.3259/98 level, its Oct 30’08 high/Oct 10’08 low and then the 1.3666 level, its Dec’04 high. On the whole, having broken out of its symmetrical triangle, EUR should aim at the 1.2330 level and beyond.
SupportComments
1.2484Oct’06 low
1.2330/24Oct 28’08 low/Jan/April’06 highs
1.1827Mar’06 low
ResistanceComments
1.2728Oct 22’08 low
1.2866Jan’07 low
1.3058/05Oct 23’06 high/.618 Ret (0.8231-1.6038 rally, monthly chart)
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