Loss Of Momentum Signals Further Weakness
EURUSD: Having broken through the 1.5062/82 levels to close higher at the 1.5143 on Wednesday, EUR failed to sustain those gains on Thursday turning back lower to close at 1.5017 at the end of the session. It was seen following through lower in early trading today leaving risk towards its LT rising trendlinecurrently at 1.4861. That level is expected to provide support and turn the pair higher but if it snaps, its weakness off the 1.5143 level should continue towards the 1.4799 level, its Nov 20'09 low and then the 1.4625 level, its Nov 03'09 low. As referenced in our special focus on EUR on Thursday of our weekly closing basis rule, since the pair could not maintain its breakout momentum and is now weakening, a positive weekly close is out of the way. Its daily studies have both turned lower supporting this view. On the upside, the 1.5062 and the 1.5143 levels must now be taken out to reverse its current downside pressure and bring further gains higher towards its May 08'08 low at 1.5283.