Saturday February, 7 2009 2:37 PM EST.
The Euro ended the week up for the first time in 5 weeks. Will that continue for the week ahead? It depends on several factors. The first factor to consider is the support and resistance levels that have been previously maintained. Last week the price bottomed out at 1.2700 which is going to be a key level of support next week. In Friday’s trading, the pair attempted to close above 1.3000 but as soon as the price hit the 1.3000 resistance level the pair back down. Last week was a consolidation was going on without any clear indication as to which way the pair might be heading next week.
Upcoming News to watch:
The most important news item next week for this pair is the US unemployment claims which comes out Thursday at 8:30 est. However by that time a new direction may be established.
The 4hr chart shows that we are forming a descending triangle, whichever way that the pair breaks out of that could be a large break out in the direction the pair moves out of the triangle. So watch that triangle as well as the key support and resistance levels. When the pair breaks that would be a time to consider entering a trade.
Winner’s Edge Trading, as seen on: