EURUSD: With the bearish momentum sending the pair through its strong supports at the 1.2142/11 zone and the 1.2000 level to test a low of 1.1954, its lowest price since Mar' 2006, risk of further weakness is now likely. In such a case, its Jan'2006 low at 1.1801 comes in as the initial support with a violation of there opening the door further weakness towards its major support at 1.1640 established in 2005. Its weekly RSI is bearish and pointing lower supporting this view. Conversely, on any recovery from its present price levels, EUR should aim at the 1.2000 level and then the 1.2111/42 levels. These levels should reverse roles and provide support thus turning the pair back down. If above there is seen, its Jun 01'10 high at 1.2353 level will be targeted and then the 1.2451 level. On the whole, threats of further weakness is likely having resumed its broader medium term weakness.
Join the Discussion