EURUSD: Still Pressured To The Upside

EURUSD - Although EUR broke and closed above the 1.5000 level on Wednesday after testing its highest price since Aug'08, price action today saw the pair taking back part of those gains. With the significance of that level, a close above there on a weekly closing basis will be required to target additional upside towards the 1.5082 level, its Aug 10'08 high and then the 1.5283 level, its May 04'08 low. We retain our medium term bullish outlook on the pair but envisage that if a hold above the 1.5000 level is not sustained, corrective declines should follow. Downside objectives are located at the 1.4843/42 level, its Sept 23'09 high/Oct 15'09 low which is expected to fence off the bears and turn the pair back up but if that zone gives in, we could see further declines towards its Oct 12'09 low at the 1.4672 level with a violation of that level paving the way for further declines towards the 1.4479 level, its Oct 02'09 low and its MT rising trendline currently at 1.4470.

Daily Chart: EURUSD