TheLFB-Forex.com A Forex Trader Portal
FX Strategy:
Euro Spillage
EUR ended the month with its biggest downside losses since triggering its medium term uptrend from the 1.2456 level in Mar’09. While the weakness is yet to be over and the mentioned trend is now on hold. "We epect euro weakness to be carried over into the new year", says the Technical Team at FXStrategy.com. Here are their thoughts on EUR/USD:
Although recoveries are expected along the way, these are seen as corrective of its short term weakness started off the 1.5139/43 levels suggesting its ST low at the 1.4216 level should eventually give in and trigger further downside towards the 1.4176 level, its Sept 01’09 low.
Further down, supports are situated at the 1.4044 level, its Aug 17’09 and its big psycho level at 1.4000. Its weekly and monthly studies are bearish and trending lower suggesting further downside. However, if another attempt on the upside is seen again, its strong resistance residing at its Aug 05’09 high at 1.4446 will be aimed at with a turn above there allowing for further correction towards the 1.4479 level, Dec 02’09 and subsequently the 1.4625 level, its Nov 03’09 low.
We envisage the 1.4479 or even the 1.4625 level should reverse roles and provide resistance but if that fails, recovery higher could shape up towards the 1.4799 level, its Nov 20’09 high. On the whole, with its weakness off the 1.5139/43 levels remaining valid and downside momentum intact, further lower prices are expected towards the 1.4176 level and beyond. Full Article and charting outlook.