EUR continues to face downside pressure nearer term following a reversal of its Wednesday gains in early trading today. This now leaves the pair vulnerable to the downside targeting its Sept 29/14'09 lows at 1.4525/14 where a decisive violation will drive the pair further lower towards the 1.4446 level, its Aug 05'09 high. A cap is expected at this level if tested as that level remains significant in the pair's medium term uptrend. Further down, a solid support should be provided by its MT rising trendlinecurrently at 1.4313. Its daily stochasticsremains supportive of this view. On the upside, a close back above its Wednesday high at 1.4672 will have to occur to reverse its current weakness and open up further upside gains towards the 1.4711 level, its Sept 28'09 with a sustained break and hold above there putting under pressure its YTD high standing at 1.4844. On the whole, with its Wednesday gains being wiped out, a resumption of its corrective declines started at the 1.4844 level looks to be triggered.
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