Updating time : 27/04/2008 23:48 GMT

EUR/USD - 1.5621... Although the single currency rallied to another fresh record high of 1.6020 (satisfying market's desire to test the 'psychological' 1.6000 mark) last Tuesday, after that, active profit taking together with offical rhetorics kept euro until heavy pressure everyday, price fell sharply to as low as 1.5555 on Friday b4 staging a weekend short-covering recovery.

Looking at the daily chart, as mentioned earlier, the aforesaid high at 1.6020 was accompanied by prominent bearish divergences on the daily indicators (macd, ris & stochastics etc), the subsequent reversal suggests a major top is possibly in place n a daily close below chart sup at 1.5510 wud be the first signal of such reversal has taken place, break of 1.5341 (24 Mar low) wud add credence to this view, then further correction twd 1.5230, being 50% r of the MT intermediate rise fm 1.4440-1.6020 wud follow. Selling euro on recovery is favoured n only abv 1.5773 (hourly res) wud risk stronger gain to 1.5840/50.

Today, as long as Friday's high at 1.5707 holds, re-test of 1.5550, then one more fall twd 1.5510 is seen, abv said res may risk retrace. twd 1.5773...