The EURUSD has been moving in a very strong bullish momentum since March 2009, slipped above 1.5000 this week but can not convincingly stay above that psychological level. While this may caused by some profit taking activity on the weekend, CCI divergence on daily chart below indicating potential bullish exhaustion and bearish reversal, or at least significant downside correction next week.
On my h4 chart below, we still have a valid bullish channel with the lower line provide good support so far. This bullish channel will be my other primary technical tool to be watched closely next week to determine whether the pair will continue it’s bullish momentum as overall sentiment may remains negative for the Greenback, but violation to the downside could be a serious threat to the bullish momentum. If that happen, the key support level is 1.4850 area. Break below that area could trigger further bearish momentum even possible further bearish reversal back towards 1.4450 area. On the upside, 1.5300 area remains potential nearest target as break above that area should continue bullish scenario towards 1.6000 area.
Have a great weekend and see you guys next week