TEN Exclusive: EURUSD – Risk Still Building On The upside
Monday, March 8th, 2010
EURUSD: EUR continues to print negative candles on the weekly chart with the current one coming on the back of its failed attempt on the downside the past week. This development continues to suggest a loss of downside momentum and a preparation for corrective to consolidation phase of its medium term declines from the 1.5143 level to the 1.3433 level. However, its current range between the 1.3433 and the 1.3787 level (Feb 17’10 high) must be resolved to the upside to resume the mentioned recovery toward its Feb 01’10 high/Feb 09’10 low at the 1.3838/51 levels. We expect the latter zone to cap corrective recovery gains if seen and turn EUR back lower again. Alternatively, if the above view fails to pan out, threats of a recapture of its 2010 low at 1.3433 cannot be ruled out with a loss of there activating further weakness towards the 1.3422/09 levels. Below the latter will set the stage for further downside pressure towards its Jun 03’09 low at 1.3211 and next its big psycho level at 1.5000. Overall, although the pair retains its broader bearish structure in the medium term, risk of further recovery higher remains on the cards.
Directional Bias:
Nearer Term – Mixed
Short Term – Bearish
Medium Term – Bearish
Performance in %:
Past Week: -0.04 %
Past Month: -1.79%
Past Quarter: -2.16%
Year To Date: -5.00%
Weekly Range:
High: -1.3787
Low: -1.3442
Similar Articles:
- EU Morning Report – Weekly Jobless claims hit 500K, flight to safety!
- Daily Outlook – USD Under Pressure, Euro Tests 1.3100
- EU Morning Report – EURUSD held above the 1.2600 support level after choppy trade the last few days.
- Daily Outlook – US Q2 Company Earning in Focus
- Daily Outlook – Risk Appetite Faltering
Learn more about our analyst's thoughts by signing up for the FX Technical Strategist Basic Suite or Professional Suite.
