The pair may have halted its weakness and is attempting to recover higher but continues to retain its short term weakness theme. This leaves the risk of returning to the 1.3419 level, its Nov 17'2011 low on the cards. A cut through that level will target its Oct 10'2011 low at 1.3377 and then the 1.3144 level, its Oct'2011 low. The bigger support lies at its psycho level at 1.3000. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, on continued attempts at recovering higher, we may see the pair targeting the 1.3611 level. However, it will have to break and hold above the 1.3866 level, its Nov 04'2011 high and the 1.4241 level, its Oct 27'2011 high to end its present bear threats and bring further gains towards the 1.4342 level, its daily falling trendline. Further out, resistance resides at the 1.4550 level, representing its Aug 29'2011 high. All in all, with short term downtrend intact, EUR looks to weaken further despite its present recovery attempts.
Join the Discussion