Forex

EURUSD-Although an intra day upsurge in price took EUR to a fresh all time high of 1.5495 on Tuesday, the pair gave back most of those gains to close the session at 1.5339.Such price actions remain suggestive of further lower prices which is now clearly supported by overbought condition on the daily time frame. In such a situation, the 1.5372 level, its 1.618 Fib Ext will be targeted ahead of the 1.5274 level, its Mar 03’07 high. Further weakness through there if seen should push the pair lower towards the 1.5145 level, its 1.272 Fib Ext and next the 1.5000 level, its psycho level with price extension aiming at the 1.4955/67 zone, its horizontal trendline/ Feb 02’08/2007 highs which is expected to provide strong support having lost its roles as resistance. On the upside, the 1.5372 level, which marks its 1.618 Fib Ext. comes in as the initial upside objective before the 1.5400 level, its psycho resistance level followed by the 1.5495 level, its 2008 peak. On the whole, while both the medium and longer term uptrend remains intact, current price action suggests continued corrective pullbacks could be seen.

Support Comments
1.5274 Mar 03’07 high
1.5145 1.272 Fib Ext
1.5000 Psycho Level
1.4955/67 Feb 01’08 high/2007 Peak

Resistance Comments
1.5372 1.618 Fib Ext
1.5400 Psycho Level
1.5495 2008 Peak