EUR/USD - Weekly Forex Analysis for April 20-24, 2009

Posted on April 18, 2009 at 20:40 in Analysis by James Chen


EUR/USD (a daily chart of which is shown) continued its expected bearishness for most of the past week after rising during the beginning of the week to approach once again the long-term downtrend resistance line extending from the second test of 1.6 back in July. Friday’s (4/17/2009) substantial bearishness broke cleanly below the key 1.3100 support/resistance level, and then closely approached the equally significant 1.3000 level before closing out the trading week. Price is currently at a critical juncture for the upcoming week of April 20-24, 2009. Any strong break below 1.3000 should signify substantial and continuing bearishness in the pair that could eventually target February and March lows in the 1.2500 price region. To the upside, the 1.3300 region and the noted long-term downtrend resistance line which is currently just above it, should serve as major upside resistance within the context of the current overall downtrend.

James Chen, CTA, CMT