EURUSD—weekly chart

The market is in a post-holiday period of non-action but Euro appears weak with a weekly close below its high last week. My short from 1.3527 stopped at breakeven. Looking at the weekly chart, one can see we're in a downward sloping channel. Drifting down to the bottom of that channel would put us in the 1.28 area. Given the Euro's downward pressures this could be achievable.

Short-term, the pair needs to get cleanly above 1.3591, last week's high in order to make anyone believe it can climb further. If it does, 1.3738 is possible which would then put 1.3818 in sight. A break below last week's low of 1.3385 would hint that the downward move is going to resume to at least a retest 1.3267.

Here's the weekly chart:












© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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