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EURUSD Weekly Summary: Still under pressure, Euro able to stay above 1.4820 key support level

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11/20/2009 07:23

The EURUSD made another downside attempted yesterday, slipped below 1.4820, bottomed at 1.4801 but still closed above 1.4820 at 1.4860. On my daily chart below, we can clearly see that 1.4820 has been providing a good support area as price bouncing to the upside after touched or slipped below that area. I have no doubt in mind that this level plays a very important role at this phase, a key level to be watched carefully in the upcoming week.

As you may already know, I already see a potential double top bearish reversal scenario since November 10. The double top bearish reversal scenario now still making good progress as price still moving nicely inside the  bearish channel after touched the peak around 1.5062 area. The 1.4820 level is also my neckline, so any penetration below that level should be considered as potential bearish reversal scenario confirmation towards 1.4625 and 1.4450. Of course, don’t forget that we also have a good support at the trendline support area (blue) which has to be violated to the downside to support the bearish reversal scenario. However, once we have consistent move below 1.4820, I believe trendline support break is just a matter of time. We will put this double top bearish reversal scenario to the test next week.

On the upside, the 1.4950/65 remains vulnerable to be tested after rejection to move consistently below 1.4820 this week. Break above that area and violation to the bearish channel should be seen as potential double top bearish scenario failure and re-testing 1.5062. Break above that area should be seen as bullish continuation scenario towards 1.5150 and 1.5300 area.

eurusddaily

Have a great weekend and see you guys next week.

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History

11/20/2009
EUR/USD Daily Review 20 Nov 09
11/19/2009
EURUSD Forecast: Bearish correction remains intact, technical levels to be wathced
11/19/2009
Daily Forecast for Crosses: November 20
11/19/2009
GBPUSD Daily Forecast: November 20
11/19/2009
USDJPY Daily Forecast: November 20

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