EURUSD: Slowly Working Its Way Higher

EURUSD -The pair was seen extending its Friday strength off its longer term trendlinetoday challenging the 1.5062 level, its Oct 26'09 high and suggesting that a break of there could be on that cards. While this supportive of broader medium term uptrend now on hold, we are suspicious of another higher price failure based on the fact that a shooting star candle pattern is now seen on the weekly time frame. The risk here to our suspicious view will a clean break and hold above its YTD high standing at 1.5143. That will call for further upside towards the 1.5283 level, its May 04'08 low and even higher. However, while the 1.5142 level remains unbroken, threats of lower prices cannot be ruled out and if that occurs, the 1.4869 level, its LT rising trendlinewill be targeted with a break turning focus to its Nov 20'09 low at 1.4799.Below there will extend losses towards its Nov 03'09 low at 1.4625 where a cap is expected.