Multi TimeFrame Market Outlook: EURUSD

Tue, May 13 2008, 18:05 GMT
by David Gaudre

WFXAdvisor


Weekly Outlook :

EURUSD Weekly Chart


Last rejection from 1.60 has been effective and the bias still consolidative on weekly chart. Expected trading range for coming weeks extends from 1.5190 to 1.5675.

To the upside, last week high at 1.5590 is the first resistance to come. A break above will send prices towards 1.5675 main resistance (1st objective). Price reaction has to be monitored here, as a sustained break of 1.5675 main resistance will allow price to test 1.5810 minor resistance (2nd objective). A weekly close above 1.5675 is needed to expect further uptrend towards historical highs.

To the downside, 23.6% fib. level (of rise from 1.3350 to 1.5906) at 1.5310 is the main support to watch.  Price rejection on this sdupport is likely, but in case of a break lower, price may easily test old blue channel trendline at 1.5180 (1st objective). If this support does not reject prices, we may see a test of 1.5050 trendline next weeks (2nd objective).


Daily Outlook :


EURUSD Daily Chart


Price still consolidate late-April fall. Expected trading range for coming days extends from 1.5350 to 1.5620.

To the upside, 1.5560 appears as an immediate resistance (1st objective). A daily close above this level is needed to see price testing 1.5690 minor resistance (2nd objective).


To the downside, while price is below 1.5560, bias remain neutral to negative. Trading below 1.5460 will confirm the immediate bearish sentiment for a test of 1.5390 (1st objective). No rebound on this level will allow price to fall further towards 1.5350 (2nd objective), ahead of 1.5280 last week low.



4-Hours Outlook :


EURUSD 4-Hours Chart


Last week price action sees up/down swings in a consolidation range extending from 1.5290 ti 1.5590.  These levels have to be monitored carefully, as a break higher or lower will confirm trend has resumed.

To the upside, 1.5520/90 resistance zone, once cleared, will allow prices to test 1.5620 & 1.5695 resistances.

To the downside, bias remain consolidative while price is above 1.5380, but a break lower will argue in favor of a downside continuation towards 1.5290. If no rejection there, 1.5230 LT support may be tested later this week.

Published on  Tue, May 13 2008, 18:11 GMT

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