EURUSD: Backs Off The 1.4816 Level

EURUSD- Weakness in early trading today has seen the pair taking back part of recent recovery after trading higher to close at 1.4772 level on Thursday. That leaves immediate risk to the downside with its Oct 07'09 low at 1.4649 level being the next support. A violation of that level will mean a decline towards the 1.4479 level, its Oct 02'09 low where a cap is expected. While the pair continues to hold above its rising MT trendline, its medium term outlook remains intact. On the upside, its Thursday high at 1.4816 will have to be invalidated to clear the way for a return to the 1.4844 level, its YTD high. Above there will resume its medium term uptrend towards the 1.4875 level, representing its Sept 21'09 high. Further out, resistance is located at its psycho level at 1.5000 and then the 1.5082 level, its Aug 10'08 high. Its daily studies are supportive of this view as they have turned higher. We retain our medium term bullish view on the pair with a break and hold above the 1.4844 level triggering that trend.

Daily Chart: EURUSDwidth=400