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EURUSD: Price hesitation has set in after EUR failed a test of the 1.4899 level on Monday. Though still holding on to its long term uptrend, it remains susceptible to the downside on a possible correction.

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If this occurs, further declines should develop towards the 1.4629 level, its April 27’2011 low. On further weakness, the pair will target the 1.4492 level, its April 26’2011 low and then the 1.4402 level, its channel support.

Alternatively, the pair will have to break and hold above the 1.4899 level to resume its long term uptrend towards the 1.4902 level, its Dec 06’2009 high. Further out, resistance comes in at the 1.5140 level, its 2009 high. All in all, EUR faces the risk of a correction.