EURUSD: Maintaining Upside Momentum Above The 1.5000 Level

EURUSD- The pair was seen taking a stab at higher prices today trading to as high as 1.5062 level and while holding above the 1.5000 level, we continue to see further upside risk. That leaves the 1.5082 level, its Aug 10'08 high as the next upside target with a loss of there exposing the 1.5283 level, its May 04'08 low. Its weekly RSI remains bullish to overbought. We are cautious of our call for further upside gains above the 1.5000 as that level is a large psycho level, so another weekly close is required to maintain a firm hold on that level. However, if the current strength we are seeing fades and a trade below the 1.5000 level occurs, declines should shape initially towards minor support at the 1.4966 level, its Oct 15'09 high with a turn below there paving the way for a run at the 1.4844 level where its Sept 23'09 high is located. We envisage a hold in price at this level if tested as it should reverse roles and provide support thereby pushing the pair higher again. Further down, another support is sited at its Oct 12'09 low at 1.4672. On the whole, while EUR remains biased to the upside medium term, it must hold above the 1.5000 level to maintain that trend. The risk to this analysis will be a failure above the 1.5000 level.

Daily Chart: EURUSD