EURUSD: Evening Star Candle Set To Trigger Further Correction

EUR put in a weekly lower close and printed an evening star candle formation(top reversal signal) to close  at 1.4481 at the end of the week. Though still retaining its bullish medium term structure, the formation of this pattern on the back of its previous week failure at the 1.4844 level has now posed a threat to further downside with  its MT rising trendline currently at 1.4424/46 levels, its Aug 09 high  being aimed at. A combination of these two levels should provide support thereby turning the pair higher again. A setback below there if it materialize will turn focus to the 1.4176 level where its Sept 01'09 low is located. Its weekly RSI now turning lower is supportive of this view. However, on a build on its Friday recovery, EUR should head further higher towards the 1.4711 level, its Sept 28'09 high followed  by its YTD high at 1.4844. Above the latter will resume the pair's medium term uptrend and put it on the path to further upside gains towards the 1.4875 level, its Sept 21'09 high ahead of its psycho level at 1.5000 and then the 1.5082 level, its Aug 10'08 high. Overall, though retaining its bullish medium term outlook, EUR is  now faced with downside pressure having lost momentum at the 1.4844 level.

Directional Bias:

Nearer Term -Bearish

Short Term - Bullish

Medium Term -Bullish

Performance in %:

Past Week:  -0.77%

Past Month: +2.22%

Past Quarter: +4.37%

Year To Date: +4.32%

Weekly Range:

High -1.4720

Low -1.4481

Weekly Chart: EURUSD