EURUSD:Although nearer term EUR continues to correct or consolidate its rally initiated off the 1.2456 level, its Mar'09 low, its overall outlook remains to the upside in the medium term. This view is clearly buttressed by its rising channel now seen on the weekly timeframe coupled with its bullish monthly momentum studies. Its medium term uptrend is coming on the back of a decline activated in 2007 off the 1.6037 high which eventually halted at the 1.2438 level in late Oct'08. This was followed with a bottoming process in form of a double bottom chart pattern triggering the current medium term strength. Upside targets are located at the 1.4446 level, its Aug 05'09 high and the 1.4719 level, its Dec 18'08 high with a break of there leaving the pair aiming at the 1.4875 level, representing its Sept 21'09 high. On the downside, its channel support at 1.4192 will be targeted at first followed by its Aug 17'09 low at 1.4044 and then the 1.3747 level, its Jun 16'09 low. On the whole, we retain our medium term upside bias on the pair with its hold within rising channel supporting that bias.

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