Even as the pair’s decline off the 1.3081 level, its Nov 25’08 high saw some respite Tuesday rallying higher, as long as its ST falling trendline drawn from the 1.3298 high(Oct 30’08 high) or even the 1.3081 resistance level is not invalidated, EUR should likely push towards YTD low at 1.2330.Taking out the latter will resume its medium term decline now on hold towards the 1.2134 level, its .50 Ret (its 0.8231-1.6038 high, monthly chart) and later the 1.1827 level, its Mar’06 low.

On the upside, resistance is initially seen at the 1.2814 level, its Nov 19’08 high with a break of there setting the stage for a run at its Nov 25 & 05’08 highs at 1.3081/1.3116 and then the 1.3298 level.EUR still retains its broader sideways trading range between the 1.2330 and the 1.3298 levels and meaningful directional moves remain on hold until a break either way occurs. On the whole, with the present range trading seen as corrective of its declines off the 1.6038 high, lower prices are expected on completing that correction.

Support Comments
1.2484 Oct’06 low
1.2330/24 Oct 28’08 low/Jan/April’06 highs
1.2134 .50 Ret (0.8231-1.6038 rally)

Resistance Comments
1.2814 Nov 19’08 high
1.3058/05 Oct 23’06 high/.618 Ret (0.8231-1.6038 rally, monthly chart)
1.3259/98 Oct 30’08 high/Oct 10’08 low

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