The EURUSD had a bearish momentum this week. Opened at 1.3783, price hit a new weekly low at 1.3420 on Wednesday. There were strong upside corrections since bounced from 1.3420, hit 1.3613 (Friday) which is the 23.6% Fibonacci retracement of 1.4246 – 1.3420 (see my h4 chart below) but the upside pullback was short lived, closed lower at 1.3522. We have seen some strong upside corrections this month, where price slipped above the EMA 200 resistance area but always whipsawed to the downside and hit new lows. From a longer term time frame outlook on monthly chart, price still making lower highs, although without lower lows. CCI has been unable to stay consistently at least below zero level indicates the bearish momentum is not so smooth. These facts keep my overall technical outlook remains to the downside, still targeting 1.3350 and 1.3145 area especially if price able to make a clear break below 1.3420. Although we might see other minor upside corrections retesting the EMA 200 and the 38.2 Fibo retracement around 1.3730/50, I do not expect any movement above 1.3870.

Have a great weekend and see you guys next week.

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