Last week I wrote about the “change of polarity” at 1.3800 and how the false breakout above that level could trigger downside pressure and keep the bearish view remains intact and that was what we see this week, limited bullish and more bearish bias as price attempted to push higher at 1.3743 but whipsawed to the downside and closed lower at 1.3551 on Friday. The overall bias remains bearish but like I said, would need a clear break below the strong/key support level 1.3500 in order to continue the bearish scenario testing 1.3250 even 1.3000. This bearish outlook can only be cancelled by a move above 1.3800, which would turn my technical bias to bullish targeting 1.4200 – 1.4300 and the upper line of the triangle formation as you can see on my weekly chart below.
Have a great weekend and see you guys next week.
©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.