The EURUSD had a significant bearish movement this week, made a big bearish candle on weekly chart, hit 1.2900 support area and slipped below the neckline of the head and shoulders pattern as you can see on my daily chart below, suggests potential bearish continuation scenario testing 1.2700 – 1.2600 area next week especially if price able to make convincing move below the neckline and 1.2900 support level. Immediate resistance at 1.3020 (Friday’s high). Break above that area could trigger further upside correction testing 1.3150 region and lead us back to a range market, but unless we have big surprise on Euro fundamental condition that could create a sentiment shift , I think overall the pressure should remain strongly bearish.

Have a great weekend and see you guys next week.

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