EURUSD: Under Pressure On Loss Of Upside Momentum
EURUSD: A second day of weakness has seen EUR halting its rally from the 1.3968 level and targeting further weakness.However, we expect its May 09’2011 high at 1.4441 to halt weakness if tested and then turn the pair back up in the direction of its long term uptrend. This will leave the pair eyeing the 1.4696 level, its Jun 07’2011 high with a breach aiming at the 1.4938 level, its 2011 high. While price hesitation may be seen at the 1.4938 level on an initial test, we look for the pair to eventually violate. Alternatively, on further declines, its Jun 06’2011 low at 1.4556 will be targeted followed by its May 09’2011 high at 1.4441 where a reversal of roles as support is likely to occur and turn the pair back up. Nevertheless, a loss of that level will open the door for more declines towards the 1.4345 level, its May 20’2011 high.