EURUSD OUTLOOK FOR THE WEEK OF JUNE 6-10, 2011

EURUSD’s  rise from the January 10, 2011 low of 1.2873 is complete at the May 4th high of 1.4939 with the May 23, 2011 daily open and lower close below 1.4150.   Similarly, the fall from 1.4939 is complete with the daily close above 1.4339 as prices subsequently moved above the  1.4339-1.4568 consolidation zone of the 1.4929-1.3969 wave.  As mentioned in last weeks update, a sustained upside break above 1.4587 favors further rise targeting  1.4678 and 1.4701.  Look for a daily open and close higher above 1.4701 to confirm further rise is once again underway targeting  1.4968, 1 .5168, 1.5301 in the days ahead as  ONLY a daily close below 1.4225 will alter this near term view.

For the week ahead, look for bids within the 1.4305-1.4384 zone to support further rise targeting 1.4701 , 1.4969, and 1.5168.