EURUSD - Weakness Set To Target The 1.4625 Level Or Even Lower

Daily Forex Technicals | Written by FXTechstrategy | Dec 10 09 11:08 GMT |

EURUSD: A one day reversal saw EUR backing off lower level prices on Wednesday to close higher at 1.4732. Part of that gain was seen being eroded in early trading today and while the pair holds and trades below its violated LT rising trendline and the 1.4799 level , odds are for a move lower towards its Nov 03'09 low at 1.4625. However, we expect that level to put up a tough defense on initial test and turn the pair back up again but if that fails, deeper weakness could shape up towards its Oct 02'09 low at 1.4479 or even lower. Its nearer term bearish outlook is coming on the back of two shooting star candles printed the previous week and the past week. Therefore, a convincing break of the 1.4625 level will break its pattern of higher highs and higher lows thereby halting is medium term uptrend and targeting further downside prices. Conversely, to reverse the present downside threats, EUR has to first break above its invalidated rising trendline and retarget its YTD high at 1.5143. Beyond there will resume its medium term uptrend towards its May 08'08 low at 1.5283 with a trade above there putting it on the path to further higher prices towards its Aug 01'08 high at 1.5630. 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