Forex Signals – Week Ahead for Euro Dollar

EURUSD Market Outlook

We have an interesting week ahead of us. Market focus, so far, has been on Euro zone debt crisis. This week US Dollar is likely to come under pressure.

By Wednesday a deal needs to be negotiated by a “supercommittee” regarding debt reduction. Also keep in mind upcoming Thanksgiving holiday in US, hence the trading week will be cut short.

Let’s look at EURUSD weekly chart:

Forex Trading Signals

Weekly Forex Signals (click to enlarge)

Price has steadily moved lower since the last three weeks, after it tested the Trendline above. Most likely we will see a sell-off towards the lower Trendline and then a bounce up from there.

Forex Trading Signals

Daily Forex Signals (click to enlarge)

On the daily chart price broke below the Trendline last week and then came back to re-test on last Friday. Currently price is below the Trendline, and close the to key area which is at 1.3550-70.

Forex Signals

Keep an eye on Existing Home Sales data from US later in the day. Other than that there is no significant news release due today.

Forex Trading Signal : Look for short if price reaches 1.3350 area targeting low of daily range at 1.3430. If price manages to break above the 1.3350-70 area then look for longs on the pullbacks.

Another trade setup occurs when price breaks below 1.3430-20, opening room for further shorts until 1.3250.

Don’t agree with this analysis? Leave a comment below.

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