EURUSD: Outlook Lower Towards The 1.4479 Level

Daily Forex Technicals | Written by FXTechstrategy | Dec 16 09 12:25 GMT |

EURUSD: With a firm hold below the 1.4625 level, its Nov 03’09 low established, further downside risk continues to point lower towards the 1.4500 level, its psycho level. A breach will open the door for more downside pressure towards its Oct 02’09 low at 1.4479 or even lower. The current price action has halted the pair’s medium term pattern of higher highs and lows and increased risk of a deeper price retracement. Its weekly RSI is bearish and trending lower supporting this view. On the other hand, a failure below the 1.4625 level if seen will turn focus to the upside towards the 1.4799 level, its Nov 20’09 high where a reversal of roles is expected to turn it back down again. If that fails, we may see further climb higher towards the 1.4949 level, the back of invalidated LT rising trendline. Beyond there will clear the way for a run at the 1.5143 level, Its YTD low. On the whole, with the 1.4625 level violated and a hold below it seen, further downside weakness is likely to continue towards the 1.4500/1.4479 levels. Mohammed Isah Market Analyst www.fxtechstrategy.com This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's 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 the author incur any responsibility. The 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