FX Traders’ weekly EURUSD medium term technical picture, and likely EURUSD direction
The following is a partial summary of the conclusions from the fxempire.com weekly analysts’ meeting in which we cover outlooks for the major pairs for the coming week and beyond.
EURUSD Weekly Technical Outlook: Accelerating Deterioration From All Perspectives
EURUSD Weekly Chart 15 July 2012 to Present
KEY: 10 Week EMA Dark Blue, 20 WEEK EMA Yellow, 50 WEEK EMA Red, 100 WEEK EMA Light Blue, 200 WEEK EMA Violet, DOUBLE BOLLINGER BANDS: Normal 2 Standard Deviations Green, 1 Standard Deviation Orange. Green downtrend line from EURUSD peak of July 2008 to present, green uptrend line from August 2012 to present. White Fibonacci retracement lines for downtrend of August 2008 To June 2010, yellow Fibonacci retracement lines for downtrend of May 2011 To July 2011.
Source: MetaQuotes Software Corp, www.fxempire.com, www.thesensibleguidetoforex.com
03 Aug. 23 23.54
Key Take-Aways Weekly Chart: Bounce or Key Support Breaking? Next Levels To Watch
Continuing the theme of the past 6 weeks, the medium term outlook continues to deteriorate from a variety of technical perspectives, chart patterns, support breakdowns, and strengthening downwards momentum. In addition, the pair’s slow grind lower within its descending channel from of the past 3 weeks accelerated decisively, as Ukraine tensions, data, and central bank expectations all turned further in favor of the USD. See our fundamental analysis for details, of which there are many.
The most outstanding change for the worst is the third consecutive penetration of yet another key support level in as many weeks.
Three weeks ago the pair decisively broke through its 200 week EMA around 1.342 As the oldest of our EMAs, such a confirmed breach takes real conviction among traders that the EURUSD is headed lower..
Last week confirmed that downward breakout with a modestly lower weekly close, yet support at the 1.333 level held for the third straight week despite plenty of bearish news from both the Ukraine crisis and the economic data, offering EURUSD bulls hope for an oversold bounce.
