Weekly Market outlook and analysis By acfx.com

[kartik]

Weekly technical outlook for EURUSD as at 26th March 2012
Overview
Last week’s candle closed higher and managed to pull with it the 8 and 21 sma’s into a positive cross over. The price action was however more or less contained within the downward channel. Although one would expect a bounce off the channel top, a break of this channel should not be ruled out. Technically however, EURUSD is still in a technical down trend as the price action is making a series of lower highs and lower lows. The stochastic is also diverging negatively near an overbought area. Furthermore there is broad resistance at the 50%/61.8% Fibonacci of 1.3420/1.3620 and price resistance at 1.3667.
Possible range
The weekly range based upon the most recent Average True Range readings is 270 pips. This implies that EURUSD could potentially trade between 1.29988 and 1.35388.
Long scenario
Break of the downward sloping regression channel with an initial target of 1.3667.
Short scenario
As we are in an established weekly down trend a conservative view of the current price action would be to participate in any sell off down to support of 1.2930, 1.2624 and 1.2328.
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