EURUSD: Trades Below 1.4844, Sees Further Downside Momentum
EURUSD- Extension of losses following the pair's collapse off the 1.5062 level was seen Thursday pushing EUR to as low as 1.4690. It was seen turning off lower prices today. Vulnerability to the downside still remains on the cards with lower level prices targeting the 1.4699 level, its daily 50 ema and its Oct 09'09 low at 1.4672. Its current weakness is coming on the back of its medium term run off the 1.2456 level to as high as the 1.5062 and with corrective declines triggered, an eventual loss of the 1.4699/72 levels could portend danger towards its LT trendline at 1.4556. We envisage this level if seen should cap declines and push the pair back up. The daily studies are bearish and pointing lower suggesting further weakness. However, break back above the 1.4844 level is required to reduce the current downside pressure and bring further gains towards its psycho level at the 1.5000 level with a breach exposing its YTD high at 1.5062. Beyond there will trigger the resumption of its medium term uptrend. On the whole, risk remains lower nearer term having collapsed through the 1.4844 level though seen turning off lower prices in early trading today.
Daily Chart: EURUSD