The MARKETS TODAY 25th January 2010 / 09:00h CET

The past week saw the Euro weaken and broke below its weekly 55 EMA and 38.2% Fib Retracement level of the 1.2886 – 1.5141 advance. However, the pair found support near the 1.4000 psychological level which also sees the 50% Fib Retracement level of the 1.2886 – 1.5141 advance. As mentioned in the latest video post of the pair we are on the working assumption that a wave 4 correction is unfolding and 1.4000 is the last acceptable level to warrant the bullish bias. A break below 1.4000 with a daily close voids this outlook and should see the Euro trade towards 1.3750. Intraday, the pair is confined within an uptrending channel and is currently challenging the bottom of this channel, so play the channel until a breakout occurs. Intraday resistance is observed between 1.4220 – 1.4260. A break above 1.4260 will see the Euro potentially retake above the 1.4300 psychological level.

Support & Resistance
1.4100 STRONG
1.4260 STRONG
 
1.4000 STRONG
1.4300 STRONG
 
1.3900 STRONG
1.4380 STRONG