EURUSD: Weakness Set To Target The 1.4625 Level Or Even Lower

EURUSD: A one day reversal saw EUR backing off lower level prices on Wednesday to close higher at 1.4732. Part of that gain was seen being eroded in early trading today and while the pair holds and trades below its violated LT rising trendlineand the 1.4799 level , odds are for a move lower towards its Nov 03'09 low at 1.4625. However, we expect that level to put up a tough defense on initial test and turn the pair back up again but if that fails, deeper weakness could shape up towards its Oct 02'09 low at 1.4479 or even lower. Its nearer term bearish outlook is coming on the back of two shooting star candles printed the previous week and the past week. Therefore, a convincing break of the 1.4625 level will break its pattern of higher highs and higher lows thereby halting is medium term uptrend and targeting further downside prices. Conversely, to reverse the present downside threats, EUR has to first break above its invalidated rising trendlineand retarget its YTD high at 1.5143. Beyond there will resume its medium term uptrend towards its May 08'08 low at 1.5283 with a trade above there putting it on the path to further higher prices towards its Aug 01'08 high at 1.5630.

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