EURUSD: The pair was seen weakening in early trading today reversing its Monday gains and targeting lower prices. While EUR weakens at the current price level, we expect it to head further to the downside towards the 1.4500 level initially with a loss of there opening the door for more downside pressure towards its Oct 02’09 low at 1.4479 or even lower. This current price action has halted the pair’s medium term pattern of higher highs and higher lows and increased risk of a deeper price retracement. Its weekly RSI is bearish and trending lower supporting this view. On the other hand, a failure below there if seen will turn focus to the upside towards the 1.4799 level, its Nov 20’09 high where a reversal of roles is expected to turn it back down again. If that fails, we may see further climb higher towards the 1.4949 level, the back of invalidated LT rising trendline. Beyond there will clear the way for a run at the 1.5143 level, Its YTD low.

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