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EURUSD:As EUR’s weakness triggered off its Mar 19’09 high at 1.3738 continues to unfold, a third day of weakness following its failure at the 13391 level saw it closing lower Thursday at 1.3173. The key support level below there lies at the 1.3113 level, its Mar 30’09 low which if broken will drive the pair further lower towards the 1.3097/93 area, its Feb 09’09 high/.50 Ret (1.2456-1.3738 rally) and then the 1.2991 level, its Feb 23’09 high. EUR remains biased to the downside while trading and holding within its falling channel. Daily studies are supportive of this view as they are pointing lower. Nearby resistance lies at the 1.3330 level, its Jan 27’09 high with a turn above there putting the next upside target at its falling channel top at 1.3452 which is within the vicinity of its daily 200 ema at 1.3488.While we envisage that initial attempt at these levels should fail, a break through there will open up upside risk towards the 1.3580 level, its April 06’09 high and then its Mar 19’09 high at 1.3738. On the whole, although short term upmove activated at the 1.2456 level is still alive, corrective price activities has put that on hold and turned focus to the downside.

Support Comments 
1.3330 Jan 27’09 high
1.3113 Mar 30’09 low
1.3097/93 Feb 09’09 high/.50 Ret(1.2456-1.3738 rally)

Resistance Comments
1.3488 Daily 200 ema 
1.3580 April 06’09 high.
1.3738 Mar 19’09 high

Daily Chart: EURUSD