February 24th, 2009

EURUSD has sustained above descending trendline support from the December 29, 2008 high of 1.4363, which comes in today at 1.2663, as this level limited yesterday’s fall favoring a move higher in the days ahead.  Additionally, minor trendline resistance from the January 28, 2009 high of 1.3328 comes in today at 1.2828, with prices currently trading at 1.2845, as hourly studies favor further upside extension towards Monday’s 1.2990 high.  Look for prices to move higher in the sessions ahead while 1.2707 supports, with a susatained break of 1.3000 targeting the February 9, 2009 high of 1.3092 and eventually 1.3355.  As to the fall from the December 18, 2008 high of 1.4718, this fall remains active as ONLY a daily open and close above 1.3355 will complete this fall at the February 18, 2009 low of 1.2512, with prices then continuing to move higher within a 1.3355-1.3875 consolidation zone before another attempt to the downside.  For the session ahead, look to buy EURUSD at 1.2794 with stop loss below 1.2744 for 1.3355 target in the days ahead.

More updates later. RW