Technicals

EURUSD: Although the pairs current recovery off the 1.5383 low may have some way to go, as long as the said corrective upside gains are limited to the 1.5593 level, its May 0608 high and the 1.5710 level, its April 1808 low risk to downside remains with the 1.5360/41 area, its May 0208/Mar 2408 lows/.382 Ret (1.4438-1.6018 rally) and its May 0808 low at 1.5283 seen as downside objectives. Below the latter will open the door for further downside weakness towards the 1.5164 level, its .50 Ret (1.4309-1.6018 high) and then its .618 Ret at 1.5048.This view remains supported by its weekly studies.However,if the 1.5710 level is taken out, downside pressure will be minimized bringing more upside gains towards the 1.5895/I 5912 area, its Mar 3108 high/April 1008 high and even higher. On the whole, while the broader bias remains to the upside, current price action still suggests a bearish short term trend.

Support Comments

1.5360/41 .382 Fib Ret/Mar 2408 low/May 0208

1.5164 .50 Ret (1.4309-1.6018 high)

1.5048 .618 Ret

Resistance Comments

1.5593 May 0608 high

1.5626/00 April 0708 low/Psycho Level

1.5710 April 1808 low

1.5895/I 5912 Mar 3108 high/April 1008 High

Daily Chart:EURUSD