EURUSD Weekly Summary: Bearish continues, testing 1.2000 area

on May 14 2010 11:59 PM

The EURUSD attempted to push higher this week, topped at 1.3093 after bounced from 1.2500 area but the bearish pressure regained its momentum, break below 1.2500 support area, bottomed at 1.2365 and closed at 1.2378 on Friday. My fundamental focus remains on market pessimistic sentiment about the global economic recovery especially in the Euro zone regarding debt contagion fear. This negative sentiment also sent Gold to its new all time high at 1249 as investors seek haven and probably will keep making new highs in weeks to come if this sentiment doesn’t change. Technically speaking, after the break below 1.2500 and the major trendline support as you can see on weekly chart below,  1.2000 is the next potential bearish target. On the upside, further recovery might be seen if price move back above 1.2500 area testing 1.2750 – 1.2800 region.  Have a great weekend and see you guys next week.

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