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EURUSD: Defended by double bottom formation and Fibonacci level.

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EURUSD: Defended by double bottom formation and Fibonacci level.
Thursday, May 1st, 2008 @ 3:46 am by Setyo Wibowo

About Setyo Wibowo:

Setyo Wibowo Living in East Java, Indonesia and holding International Relations degree, Setyo Wibowo began his forex trading career by joining Fortune Channel Investment in 2000 as a market analyst, while learning to trade forex independently on his own. Driven by his desire to share his trading experiences and ideas, Setyo joined the FX Instructor team in 2008. Setyo Wibowo is now living in Mojokerto, East Java, Indonesia.

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Thu, 01th of May, 2008
By Setyo Wibowo (analyst@fxinstructor.com)

EURUSD Outlook
Yesterday EURUSD made a minor recovery after suffered sharp losses from 23/04/2008. But this recovery may means something significant from technical view. The pair bottomed at 1.5516. On daily chart, this fact is seen as a double bottom formation with 03/04/2008 low at 1.5510 (see Chart #1). This fact become important to my technical analysis, since I believe that the major bullish outlook for EURUSD is not over yet. This double pattern formation could be a early trigger for EURUSD to defend it’s major bullish trend. From Fibonacci retracement point of view, this double bottom formation is right at 38.2 % Fibonacci retracement from 1.4702 to 1.6019 (also see Chart #1).


Chart #1 (click to enlarge)

So, the major bullish uptrend for EURUSD has 2 strong “defender” at this stage. A failure to break this double bottom formation could stop the short/medium term bearish momentum, while a break from this formation opens the door to 1.5341 and end the major bullish outlook.

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