Sat, 16th of May, 2009

By Setyo Wibowo (analyst@fxinstructor.com)

EURUSD Outlook

This week, after failed to break above key resistance level around 1.3736, the pair is moving lower and hit the intra week low at 1.3461 yesterday. On h4 chart below we have “head and shoulders” formation after significant uptrend since March 04 and it seems like the “neckline” has been violated to the downside suggesting a potential bearish reversal warning. However we need more convincing movement below the “neckline” to confirm the bearish reversal scenario. If the pattern is valid, the nearest downside objectives are 1.3300 followed by 1.3100. Have a great weekend and see you guys next week.