EUR/USD Forecast for the Week of January 23, 2012, Technical Analysis

EUR/USD shot straight up for the week like it was launched from a cannon. The pair went so far as to attempt a break above the 1.30 resistance level, but was repelled. However, the weekly candle is very strong, and one has to wonder if it isn’t only a matter of time before the level gives way. The previous week had a shooting star at the bottom of a down move – something that normally signals continuation, but the week saw this pair violate the top of that candle, showing real strength. While we are impressed, the resistance level has to be cleared in order for us to buy, somewhere above 1.31 or so. A break below the lows of the week would be massively bearish, and have us selling hand over fist.

EUR/USD Forecast for the Week of January 23, 2012, Technical Analysis
EUR/USD Forecast for the Week of January 23, 2012, Technical Analysis

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