EURUSD: Having violated a layer of supports between the 1.4044 and the 1.4000 levels the past week, threats of further downside pressure is now expected towards its July 08'09 low at 1.3831 and then the 1.3747/33 levels, its Jun 16'09 low/.50 retracement(1.2328-1.5143 rally). A firm invalidation of the latter level will call for further downside weakness towards its .61 Fib retracement/May 18'09 low at 1.3422/09 where a cap may be seen thereby triggering a recovery higher. Both its weekly and daily studies are bearish and pointing lower suggesting further weakness. On the other hand, recovery higher if activated will target its invalidated psycho level at the 1.4000 level ahead of the 1.4028/44 levels, its Jan 21'10/Aug 17'09 lows. We expect a combination of these two levels to reverse roles and provide resistance thereby turning the pair back down again. Further out, upside objectives are located at its Jan 25'10 high at 1.4194 and the 1.4216/62 levels, its Dec 22'09 low/Jan 08'10.

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