Forex Trading: Weekly Analysis Of EUR/USD

EUR/USD (a daily chart of which is shown) made a major bullish statement on Friday of this past week after consolidating aimlessly for the first part of the week. At the very beginning of the week, price had made a tentative breakout above the long-term downtrend resistance line extending from the 2nd test of 1.6 back in July, but then struggled to climb significantly above the 1.3300 price region for the next few days. Friday, however, saw a one-directional range of almost 300 pips as the pair rose decisively out of its consolidation. In the process, price is now confirming the trendline breakout that could potentially change the overall trend.

For the upcoming week of May 11-15, the pair is approaching key resistance around 1.3750, which represents an important prior support/resistance level as well as the last major swing high. A breakout above that level would represent a significant confirmation of a new uptrend, and should target immediate further resistance in the 1.3900 price region. As the launching pad for the current bullishness, the 1.3300 price region should provide strong support for the pair going forward.

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