FX.co ★ EUR/USD Weekly Forecast 14th - 18th/2011

WEEKLY OUTLOOK :

On weekly charts the EUR/USD is still in a Bullish situation, this is indicated By the 10 periode Simple Moving Avarage slope still going up and the bar still being above the Moving Avarage. The last channel is too far, because at the moment in order to cancel the upside movement the pair must break out and close below the 1.3427 level. However, the Stochastic is still in a BUY mode, this indicators shows that the Bullish situation is in "Overbought" mode. However, the picture on charts and on indicators looks different, because the price is making a new high at its peaks; though, the stochastic is held from making new highs on peaks. The indicator is making a "Double Top' pattern (blue circle); this situation gives a warning signal for a retracement for this pair. This whole week the EUR/USD will be testing the previous week's low (1.3749) & the previous week high (1.4035), if the EUR/USD breaks the weekly low it is expected to decline, however if it breaks the weekly high it will advance.