EURUSD: Still Maintains Its Nearer Term Bearishness Below The 1.4200 Level.

EURUSD- With weakness triggered off the 1.4200 level, its July 01’09 high driving the pair further lower though closing marginally at 1.3936, EUR remains vulnerable while holding below the 1.4200 level.

This remains our nearer term view and that leaves further downside prices being targeted with the 1.3831 level, its July 08’09 low seen as the initial support. A close below there will highlight the 1.3738 level, its Mar 19’09 high where a cap is expected.

That level should hold and preserve its medium term uptrend started at the 1.2456 level. However, if that level snaps, lower level prices should shape towards its May 18’09 high at 1.3422. Its weekly RSI has turned lower supporting this view. On the other hand, in order for our downside view to be annulled, a return above the 1.4200 level must be seen followed with a recapture of its YTD high at 1.4339 Beyond there will resume its medium term uptrend towards the 1.4719 level, its Dec 18’08 high. On the whole, while EUR maintains below the 1.4177/1.4200 area, it remains vulnerable to the downside in the nearer term

Directional Bias:
Nearer Term –Bearish
Short Term – Mixed
Medium Term –Bullish

Performance in %:
Past Week: -0.31%
Past Month: -0.83%
Past Quarter: +5.89%
Year To Date: -0.25

Weekly Range:
High -1.4072
Low -1.3833

Weekly Chart: EURUSD