EURUSD: Follows Through Lower, Set To Weaken Further

EURUSD: With a follow through lower on the back of its past week gains now underway, risk of further declines towards the 1.4072 level, its Jun 16’2011 low is expected. On a decisive break and hold below the 1.4072 level, further weakness will shape up towards the 1.3968 level, its May 23’2011 low .

Further down, support lies at the 1.3900 level, its psycho level. Its daily RSI is bearish and pointing lower supporting this view. On the other hand, the pair will have to climb back above the 1.4578 level to reverse its present bear pressure and then target the 1.4696 level, its Jun 07’2011 high.

Further out, the 1.4938 level, its 2011 high comes in as the next upside objective. All in all, EUR’s immediate bias remains to the downside having held on to its bearish tone set from the 1.4578 level.


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