Daily Technical Analysis

EURUSD: Defended by double bottom formation and Fibonacci level.

EURUSD

Yesterday EURUSD made a minor recovery after suffered sharp losses from 23/04/2008. But this recovery may means something significant from technical view. The pair bottomed at 1.5516. On daily chart, this fact is seen as a double bottom formation with 03/04/2008 low at 1.5510 (see Chart #1). This fact become important to my technical analysis, since I believe that the major bullish outlook for EURUSD is not over yet. This double pattern formation could be a early trigger for EURUSD to defend it’s major bullish trend. From Fibonacci retracement point of view, this double bottom formation is right at 38.2 % Fibonacci retracement from 1.4702 to 1.6019 (also see Chart #1).

So, the major bullish uptrend for EURUSD has 2 strong 'defender' at this stage. A failure to break this double bottom formation could stop the short/medium term bearish momentum, while a break from this formation opens the door to 1.5341 and end the major bullish outlook.

FX Instructor LLC
www.fxinstructor.com

The information has been prepared for information purposes only. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. This information contained herein is derived from sources we believe to be reliable, but of which we have not independently verified. FXInstructor LLC assumes no responsibilities for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person's reliance upon this information. FXInstructor LLC does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXInstructor LLC shall not be liable for any indirect, incidental, or consequential damages including without limitation losses, lost revenues or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results