With pressure pushing the pair strongly higher through its psycho level at 1.3000 and the 1.3027/45 levels, its July 20/27'10 highs the past week, further upside risk is now targeting its .382 Fib Ret at 1.3109. While we expect price hesitation to turn the pair back down at that level, it should eventually break through that level and target its May 03'10 high at 1.3310. This view is consistent with short term uptrend triggered from the 1.1875 level. Alternatively, to reverse its current bullish bias, a violation of the 1.3000/27 levels, its psycho level July 20'10 highs followed with a loss of the 1.2721 and the 1.2466 levels will have to occur to clear the way for more downside pressure towards its .50. Fib Ret (1.1875-1.2466 rally) at 1.2169 and then the 1.2162 levels, its Jun 14'10 low. Below the latter will set the stage for a move lower towards the 1.2000 level. Overall, EUR remains biased to the upside and looks to recapture the 1.3109 levels.
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