The EURUSD’s rally has probably accelerated in the past 2 weeks based on trendline studies. This comes on the back of higher levels every week since Week 26 (late June).
Friday’s (23 July 2010) closing however has added some uncertainty so we will only know whether EURUSD will make continue its upward march next week. Why is this so?
By closing near to the same level as its opening at the head of the week, price seems to suggest that market sentiment is not that strong and could be undecided. Add to this observation, Tuesday’s action on 20 July 2010 was also a failed attempt to breach week 28 high at around 1.3000 made on Friday 16 July 2010. Put this together and we have a sideway week that has a failed attempt on the upside.
EURUSD rally steeper but week 29 made no progress
Going into next week, a few things might happen:
- Another attempt on 1.3000.
- A successful breach and we will have a continuation to the rally.
- If not, bears will be emboldened to short in which case we might see a price coming back to the 22 July 2008 low at 1.2730.
- From here on, ranging activity might set in until we know for sure where things are headed.
