EURUSD: Remains Biased To The Upside Medium Term

EURUSD: The pair continued its strength on Monday printing a new medium term high of 1.4651 to close at 1.4636. Although an early morning trading price action today saw the pair hesitating and weakening , its overall trend remains higher suggesting that the mentioned price action remains corrective of its MT uptrend. In such a case, its minor support printed monday at 1.4514 will come in as initial support ahead of its stronger support residing at the 1.4446 level, its Aug 09 high where a reversal of roles is expected to turn EUR higher again. On the upside, halting its current weakness will turn focus to the 1.4651 level initially with a loss of there driving the pair further higher towards the 1.4719 level, its Dec 18'08 high. Beyond the latter will create scope for further upside targeting the 1.4875 level, its Sept 21'09 high. Larger time frame charts are supportive of this view. On the whole, though hesitating, EUR remains biased to the upside in the medium term.

Support                Comments

1.4514                  Sept 14'09 low

1.4446                   Aug 05'09 high

1.4405                   Aug 27'09 high

Resistance            Comments

1.4719                   Dec 18'08 high

1.4875                   Sept 21'09 high

Daily Chart: EURUSD