The EURUSD made a significant bearish momentum this week, fell below psychological support 1.2000, bottomed at 1.1955 on Friday. From longer term view, this fact could bring the pair to a new range area between 1.2000 – 1.1600 region. In the nearest future, we may see some upside technical correction above 1.2000 area but the main scenario is still to the downside as fundamentally the Euro debt crisis could keep send the Euro lower. Upside risks could be coming from central banks intervention to avoid rapid fall. The SNB and China already showed their support for Euro in the name of national interest and some players may see the current level as a good opportunity to buy the Euro (note: price already in oversold area) which could produce another volatility around the psychological area. Technical resistance is seen around 1.2150 and 1.2350 region which could be tested if price fail to consistently stay below 1.2000.
Have a great weekend and see you guys next week.
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