Having closed higher for a second week in a row following its reversal off the 1.3427 level, EUR now looks to strengthen further towards the 1.3859 level, representing its Feb 02'2011 high. Once this key level is broken, the pair will head towards its Nov 08'2010 high at 1.4083 and then the 1.4281 level traded in early Nov 2010. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, below the 1.3427 level, its Feb 14'2011 will put the above view on hold and bring losses towards the 1.3245 level and then the 1.3000 level, its big psycho level. All in all, with continued rally seen the past week, EUR should strengthen further in the new week.
Join the Discussion