EURUSD—weekly

The weekly chart shows Euro at resistance in a narrowing price range. Further gains would most likely result in the 10 EMA crossing up over the 20 EMA which would be bullish. Momentum also looks good on the weekly chart. Last week's candle was strong and bullish and hints that 1.2587 may have been the end of the 1.3335 to 1.2587 correction. If this is a C wave, it could extend to a minimum of 1.3487, which would bring it to some still unmet price targets such as from the inverted head and shoulders on the daily chart whose target was 1.3469 and from my three-hour P&F chart at 1.3520. First, though, it would have to clear the 1.3335 resistance.

If the downtrend line proves to be resistance then the pair could drop to 1.3000, 1.2850, and 1.2717 (the weekly uptrend line). Below that would suggest a resumption of the downtrend.

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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