EUR/USD Weekly Forex Analysis

EUR/USD (a daily chart of which is shown), despite its continuing bullish breakout attempts this past week, was unable to break and close above a key long-term downtrend resistance line that currently resides around the 1.3300 price region. The fact that price could not manage to make any significant breach of this line attests to the strength of its dynamic resistance that has been in place since the second test of the 1.6 double-top back in July. In the latter part of the past week, price rose up to test and poke through the 1.3300 level on three consecutive days, but was unable to close above that level on any of those three days. Closing the week just under 1.3300, price is currently at a very important juncture that could very well dictate the trend direction going forward. For the upcoming week of May 4-8, watch for any clear breakout momentum above the long-term trendline, in which case a further key resistance target resides in the 1.3580 price region. If the long-term downtrend line is ultimately respected, key support can be found in the 1.2900 region.

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