EURUSD Weekly Summary: Euro recovered quickly, trendline support hold, bullish remains intact

About 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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This week, the bullish momentum of the EURUSD was limited as price refused to break above 1.5150 resistance area, hit the low at 1.4827 but bullish momentum regain some strength and closed higher at 1.4985 yesterday. My strategy to place a long position  if price move near the trendline support or 1.4850/20 area with tight stop loss proved to be a good strategy . On my daily chart below, we can see that the trendline support  and 1.4850/20 area provided a good support at this phase as price was significantly reverse higher, closed at 1.4985 after hit bottom at 1.4827. This fact indicating that bullish scenario remains valid thus potentially should re-retesting 1.5150 and 1.5300 technical target in the upcoming week. The trendline support and 1.4850/20 area  remains a key support level for me at this phase and only break below that area should be seen as potential bullish failure which could trigger bearish reversal towards 1.4625 and 1.4450.

On fundamental side, the impact of Dubai World debts payment delay was only a temporary panic-selling. However, this fact show us how instable and vulnerable the economy recovery progress is and maybe now is the time that we shouldn’t have too much confidence as it may hurt us badly. If debts payment delay of Dubai World can create such panic and high volatile market, I can’t imagine what is going to happen if we have bigger surprise.

Have a great weekend and see you guys next week