Good day traders!

The euro dollar looked heavy at the closing on Friday. The pair has broken below the bottom of the up trend line, tested once on Wednesday and fell with one large swoop on Friday. So, what can we look forward to next week?

From the above chart, we can see that the 150 ema is providing some support. We have got to see whether this support is strong enough for the pair to move back up and test the resistance area around the 1.314 level which also happens to be the 50% fibonacci level taken from a high of 1.424 and the low of 1.204.

If the 150 ema support fails, we can expect the euro dollar to test the 1.273 area which happens to be a minor support area way back in middle of May and turned resistance on the 18th of June 2012. If the pair decides to go lower, we have the 23.6% fibonacci level at 1.256 as an area of support.

Looking at the chart, its quite clear that we are still in a down trend. Clearence of the 1.3142 is required before we can look at higher price levels of 1.34 and above.



Forex Trader