Euro Risks Downward Move

NEW YORK (TheStreet) -- Although the Eur-Usd still retains its overall medium-term upside bias, its failure at higher-level prices Tuesday saw it selling off sharply.

Risk has now shifted to it bigger support currently at the 1.4716 level, its long-term rising trendline in place since March 2009. The Gbp-Usd came under pressure after failing to follow through higher on its Monday gains today.

It traded to as low as 1.6743 level in the U.S. session. The pair still retains its recovery triggered off the 1.5706 level. The Usd-Jpy saw a respite, reversing higher off its intra-day low of 88.72 during the London session today. A corrective upmove could be shaping up from its declines started at the 92.27 level in late October 2009.

It is still pressured to the downside in the short term. Hesitation at higher prices followed with a decline through the 0.9327 level saw the Aud-Usd weakening and testing a low of 0.9235 today. That leaves further downside risk towards the 0.9209 level.

Usd-Cad recovered higher today following its downside weakness activated at 1.0867 on Nov. 1, 2009. If that strength continues, the pair could push higher towards its nearby resistance located at the 1.0592 level.

Eur-Gbp continued its weakness today breaking below the 0.8896 level to test a low of 0.8832 during the US session today. This development now puts the 0.8837 and the 0.8800 levels under pressure.

In a similar fashion, Eur-Jpy is now targeting its symmetrical pattern base at 131.96, having followed through lower on its Monday losses. That level may provide a platform for a bounce higher if tested.