EURUSD: Attempts at building on recovery gains continue to be seen but with price hesitation. Additionally, as long as the 1.4339 level, its May 13’2011 high and the 1.4422 level, its May 11’2011 hold as resistance levels, our bias remains lower.
On the downside, below the 1.4046 level, its May 16’2011 low will reverse its present recovery attempt and turn risk towards the 1.4020/00 levels, its mar 28’2011 low/psycho level. A combination of these levels should halt declines if seen and turn the pair back up. Further down, the 1.3852 level comes in as the next downside target.
Alternatively, on a violation of 1.4339 level and the 1.4422 level, further strength should build up towards its May 06’2011 high at 1.4586 and ultimately the 1.4938 level, its 2011 high. All in all, though attempting a recovery, it remains vulnerable to the downside nearer term.