EURUSD: Hesitating With Upside BiaS 

EURUSD: Although hesitating, EUR remains biased to the upside with eyes on the 1.3322 level traded on Feb 09’2012.A break of here will aim at the 1.3375 level, its Dec 12’12 high followed by its Dec 02’2011 high at 1.3547. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, the risk is for EUR to return below the 1.3026 level, Feb 06’2012 low followed by the 1.2975 level. A breach of there will set the stage for further declines towards the 1.2930 level, its Jan 25’2011 low. Below here will call for more declines towards its Jan 23’2012 low. All in all, the immediate risk remains higher with the risk of retargeting the 1.3322 Level.

USDCAD: Attempts A Correction But Vulnerable

USDCAD: The pair continues to trace out a temporary bottom but still retains its nearer term downtrend started from 1.0524 level. This leaves the risk of a return to the 0.9923 level traded on Feb 09’2012. A decisive break below there will call for a run at the 0.9890 level, its Oct 27’2011 high. Further down, support resides at its Sep 16’2011 low at 0.9779. The alternatively scenario will be for USDCAD to strengthen further on correction towards the 1.0051/74 levels. We expect a reversal of roles to occur here and turn the pair lower again but that level snaps, further bull pressure should build up towards the 1.0284/1.0317 levels . Further out, resistance comes in at the 1.0423 level, its Dec 14’2011 high followed by its Nov 25’2011 high at 1.0524. Further out, its Oct’2011 high at 1.0665 will come in as the next upside target. All in all, the pair remains vulnerable to the downside nearer term though attempting a correction.