The EURUSD failed to continue its bullish momentum this week. Opened at 1.4139, price hit 1.3607 on Tuesday but closed higher at 1.3789 on Friday. Price has been moving sideways between 1.3870 – 1.3607 since Tuesday and need a clear break from the range area to see clearer direction. My overall bearish intraday bias since the fall from 1.4246 (last week’s high) and the break below the trend line support (red) remains intact. Price is in a bullish intraday correction phase since bounced from 1.3607 but found a good resistance around the 38.2% Fibonacci retracement of 1.4246 – 1.3607 as you can see on my hourly chart below. For the upcoming week, the 38.2% resistance level and 1.3870 could be a key resistance as a clear break above that area could trigger further bullish pressure testing 1.4000, which is also the 61.8% Fibonacci retracement even higher. On the downside, we need a clear break and daily close below 1.3607 to continue the bearish scenario, testing 1.3500 or lower.

Have a great weekend and see you guys next week.

©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.