EURUSD: Broader Bias Remains To The Downside.
EURUSD: Despite the pair's two-day recovery seen the past week, its broader weakness triggered off the 1.5139/43 level continues to point lower. This is coming on the back of its previous week violation of its key support at the 1.4479 level, its Dec 02'09 low. With that said, further declines are expected towards the 1.4176 level, its Sept 01'09 low with a decisive penetration of there targeting the 1.4044 level, its Aug 17'09 low and next its big psycho level/July 29'09 low at 1.4000/06. This view is supported by its weekly stochastics and RSI which are bearish and trending lower suggesting further downside weakness. However, if further build up on its last week recovery materializes, we could see strength shaping up towards the 1.4446 level, its Aug 05'09 high followed by the 1.4479 level, its Dec 02'09 low and then the 1.4625 level, its Nov 03'09 low. We expect a combination of these three key levels to reverse roles and provide resistance thereby turning the pair lower again.
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