EURUSD: Correction Eyes The 1.3682/92 Levels.
EURUSD: As a build up on its Tuesday hammer formation continues to shape up, we are seeing upside risk towards the 1.3682 level, its Feb 26’10 high and its Feb 23’10 high at 1.3691 initially. This corrective recovery is coming on the heels of EUR’s price failure at the 1.3433 level on Tuesday followed with a hammer formation (bottom reversal signal). On a clean penetration and negation of these levels, further upside risk should develop towards the 1.3787 level, its Feb 17’10 high and next 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 the pair lower again in line with its broader downside weakness. On the other hand, if a failure is seen at its current price levels, threat will turn lower towards its Year-To-Low at 1.3433 with a violation of there triggering its medium term downtrend resumption towards the towards its Jun 03’09 low at 1.3211 and next its big psycho level at 1.3000.
By Mohammed Isah - fxtexhstrategy.com
FX-underground
Euro Exchange RateOTHERS
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