Special Focus on EURUSD Daily
25 July 2008
Last Updated on 20 July 2012
Mohammed Isah
EURUSD: Maintains Its Broader Downside Bias.
EURUSD: While a clear corrective recovery higher is not seen, EUR faces downside risk. This view remains intact while it holds below 1.2407 level. The big risk is for the pair to return to the 1.2162 level. Below here will resume its broader weakness towards the 1.2149 level, its Jun 27’2010 low. EUR may turn higher on testing this level but if that level breaks, further declines could shape up towards the 1.2100 level. Below here will turn risk towards the 1.2000 level. Its daily RSI is bearish and pointing lower supporting view. On the upside, the pair must break back above the 1.2286/1.2407 levels to annul its current weakness. This if seen will pave the way for a move further higher towards the 1.2748 level followed by the 1.2824 level. Further out, a cut through here will target the 1.2902 level. All in all, EUR remains biased to the downside medium term.
AUDUSD: Takes Out Major Resistance, Resumes Long Term Uptrend
AUDUSD: With the pair breaking through the 1.1009 level, its 2011 high on Tuesday and following through higher in early trading today, further upside gains are likely in the days ahead. This is coming on the back of a recovery tone set from the 1.0389 level, its Jun 27’2011 low. Further gains now targets the 1.1100, its psycho level with a cut through there allowing for more strength towards the 1.1200 level, its psycho level and possibly higher towards the 1.1300 level. Its daily and weekly RSI are bullish and pointing higher suggesting further gains. On the downside, the 1.1009 level and the 1.0800 level, its July 13’2011 high come in as supports. As long as these levels hold as supports its present bullish build up remains intact. However, the risk to our analysis will be a break and hold below the 1.0525 level, its July 12’2011 low followed by the 1.0389 level. Further down, support lies at its April 05’2011 low at 1.0287 and next its .618 Fib Ret.(0.9702-1.1009 rally) at 1.0200.
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