Week of September 19-24, 2010

EURUSD’s broad outlook remains unchanged as the fall from the November 2009 high of 1.5143 remains active as ONLY a weekly open and close above 1.3124 will complete the fall from 1.5143 at the June 2010 low of 1.1876.  A weekly open and close above 1.3124 will solicite further rise within a 1.3124-1.3895 zone before another attempt to the downside, however, once prices have moved within the sited zone, a sustained break outside the 1.3124-1.3895 zone will favor further price extension in the direction of the break.  As to the fall from 1.3332, this fall is complete at 1.2586 as daily prices have sustained above 1.2871 reaching 1.3158 last Friday with further rise expected to unfold in the days ahead targeting 1.3390, 1.3675 and 1.3763  while 1.2900-1.2962 supports.  However, a daily close below 1.2962 while 1.3158 caps will favor further downside extension towards 1.2750 while a below 1.2600 initially targets 1.2432.