EURUSD: Strengthens, Eyes Minor Resistance.
EURUSD: The upside risk referred to in our weekly analysis was seen playing out in early trading today pushing EUR to as high as 1.4273 as at the time of this analysis. This development now leaves EUR targeting its minor resistance at the 1.4290 level, representing its July 23’09 high with cut through there opening the door for further upside towards the 1.6339 level, its YTD high. A climb above there will clear the way for higher prices towards the 1.4719 level, its Dec 18’08 high. This view is supported by its weekly and daily RSI which have turned higher. Downside objective starts at the 1.4200 level, its July 01’09 high ahead of the 1.4164 level, its July 17’09 high and then the 1.4072 level, its July 09’09 high with a turn below there leaving the pair targeting the 1.3897 level, its July 13’09 low. Further down, on a break of the latter, the 1.3831 level, its July 08’09 low will be aimed at before the 1.3748 level, representing its Jun 16’09 low. That level which doubles as its range bottom between the 1.4339 and 1.3748 levels is expected to cap declines if seen. On the whole, with a second week of upside seen, EUR looks to retest and possibly trigger the resumption of its medium term upside.