The EUR/USD attempted to push lower this week, bottomed at 1.3282 but price whipsawed to the upside on Friday, topped at 1.3494. On daily chart below we can see that price is now re-testing the upper line of the bearish channel indicating critical technical phase. In its bearish journey from December 2009 until now, price corrected higher after found four bottoms (1.4830, 1.4260, 1.3450, 1.3267) but the bearish channel still hold so far, keep the bearish scenario intact as price break below those bottoms one by one and I really want to see if price can do the same thing to 1.3267 level. So what will happen next week should be very important to the long term outlook. While fundamental aspects are a little bit more complicated with so many news and rumors, technical view can give a simple solution. A violation to the bearish channel could be seen as potential bearish failure and a new bullish phase testing 1.3830. But if the bearish channel hold, the major bearish scenario should remain intact re-testing 1.3267 area before testing 1.3100.
Have a great weekend and see you guys next week
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