EURUSD: Breaks The 1.4844 Level, Eyes The 1.5000 Level

EURUSD - Upside momentum built from the 1.4479 level, its Oct 02'09 continued with a higher close on Tuesday and follow-through higher today breaking decisively above its YTD high at 1.4844. Having maintained our call for that break and a resumption of its medium term uptrend started at the 1.2456 level in our past analysis, we risk see towards its psycho level at 1.5000 and then the 1.5082 level, its Aug 10'08 high. Beyond the latter will turn focus to the 1.5282 level. However, EUR may face some tough times at the 1.5000 level on first test but any pullback at that level is seen as corrective. Its daily studies are bullish and trending higher supporting this view. On the downside, pullbacks if seen should target its eroded resistance levels at the 1.4875/44 level, its Sept 21'09 high/former YTD high. A reversal of roles is expected at these levels to turn the pair back up gain. Further down, its Oct 09'09 low at 1.4672 level will come in as the next target with a violation of that level paving the way for further declines towards the 1.4479 level, its Oct 02'09 low where a cap is likely. On the whole, with the resumption of its medium term uptrend activated, risk now remains higher towards the 1.5000 level.

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