EURUSD: Although the pair is now maintaining its recovery gains triggered off the 1.4252 level, we would want to see a decisive break and hold above its Aug 05’09 high at 1.4446 which will convince the market of further upside incursions. Above there will expose the 1.4479 level, Dec 02’09 where a break will set the stage for a move higher towards the 1.4625 level, its Nov 03’09 low and then the 1.4799 level, its Nov 20’09 high. We envisage the 1.4479 or even the 1.4625 level should reverse roles and provide resistance thereby turning the pair lower. Its daily RSI is bullish and pointing higher suggesting further strength. On the other hand, if the 14446/79 levels hold as resistance and turn the pair back down, we could see further downside towards its Dec 22’09 low at 1.4254 with a cut through there allowing for further weakness aiming at 1.4216 level and then the 1.4176 level, its Sept 01’09 low. Below the latter will resume its ST downtrend now witnessing correction. Further down, supports are situated at the 1.4044 level, its Aug 17’09 and next its big psycho level at 1.4000.
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