FXstreet.com (Buenos Aires) -EUR/USD has traded between 1.2455 and 1.5144 level this year, with a general bullish tone since that 1.2455 low form past March 2009.
According to the ecPulse.com team if a Fibonacci retracement is apply to such rally, we can see that the pair currently trades above 38.2% at 1.4125 and above the 50% at 1.3800; in role this indicates the possibility for an upside direction to prevail in 2010; RSI is trading in oversold areas and that increases the likelihood for the upside direction to return. The bullish 2010 outlook will remain valid as far as trading is above 1.3800 while 61.8% correction at 1.3490 provides further support for the trend.
To the downside, the ecPulse.com team provides us with the following long term supports for 2010: 1.4125, 1.3800 and then 1.3490.
They finally state: This analysis assures that the initial direction for the pair's trading this year is expected to be to the downside, and then the general trend will be decided according to 1.3800 on whether the harmonic pattern will settle for this target or not.