EUR/USD: Looks To Trigger Corrective Recovery

By @ibtimes on

EURUSD: A rally initiated on Thursday saw the pair reversing most of its past week earlier losses to close marginally lower on Friday. This development produced a rejection candle suggesting a corrective recovery could be shaping up in the days ahead. If this occurs, we should see further up move towards the 1.3590 level, its April 02'10 high initially with a cut through that level exposing its Mar 15'10 low at 1.3638 before its Mar 17'10 high at 1.3816 and next the 1.3838 level, its Feb 09'10 high. A breather may be seen here but if that fails to occur, risk of additional upside gains towards its Feb 03'10 high sited at 1.4025 is likely. However, the risk to this analysis will be a break back below the 1.3266 level, its 2010 low, which will open the door for more downside pressure towards its Jun 03'09 low at 1.3211 and then its big psycho level located at 1.3000.

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