EURUSD: The pair was seen heading higher in early trading today following a flat close on Wednesday but the immediate challenge is for it to break and hold above its Aug 05’09 high at 1.4446. Doing so will resume its corrective recovery initiated from the 1.4216 level towards the 1.4479 level, Dec 02’09 with a break setting the stage for a move higher towards the 1.4625 level, its Nov 03’09 low and then the 1.4799 level, its Nov 20’09 high. We envisage the 1.4479 or even the 1.4625 level to reverse roles and provide resistance. On the other hand, if the 14446 level holds as resistance and turns the pair back down, we should see further downside towards its Dec 22’09 low at 1.4216 with a cut through there allowing for further weakness aiming at the 1.4176 level, its Sept 01’09 low. Further down, supports are situated at the 1.4044 level, its Aug 17’09 and next its big psycho level at 1.4000

Daily Chart: EURUSD