Week of June 22, 2009

EURUSD’s rise from the April 22, 2009 low of 1.2885 remains active as only a daily open an close below 1.3783 will complete this rise while the June 3, 2009 high of 1.4338 holds. Once prices have opened and closed below 1.3783, risk will then favor further price extension to the downside within a 1.3440-1.3783 consolidation zone before another attempt to the upside. Today’s 20 day MA comes in at 1.4005, with a daily open and close above the 20 day MA favoring further price extension initially targeting 1.4271. Weekly studes suggest price will move lower this week as 3 consecutive weeks of lower highs and lower lows suggest a correction should soon unfold. For the session ahead look to buy EURUSD while prices hold above 1.3880 and sell a break of 1.3880 for 1.3748 initial target.