Technical analysis
Mohamed Samy
On the weekly chart we have two important facts.
1.The pair has broken its weekly uptrend line extending from 1.4226 up to 1.6745 with successful retesting.
2. The pair has broken an obvious low (support) at 1.5779 making a lower low.
Both facts indicates weakness in the structure of the long-term uptrend of the pair.
Also it's important to notice that the pair is visiting an important area of support represented in the 50% Fibonacci level marked on the chart & the previous low 1.5343 in December 2010.
As we see on the daily chart, we had successful retests of the broken bearish channel at 1.5345.
Level 1.5345 isn't just the backside of the broken bearish channel but also a strong daily support for the pair mentioned in previous articles.
The daily candlestick looks very bullish after achieving the target of breakout of the previous range 1.5533- 1.5715 to the downside.
We still hold our suggested long position which hit three of its TP level at 1.5490, 1.5530,1.5590 waiting for 1.5670 to be hit as well.
We may be about to have a reversal double buttom pattern with neckline at 1.5710 to be confirmed once a daily candlestick closes above the neckline.
This double buttom pattern if confirmed will target 1.6000 in the next few weeks.
http://instaforex.com/forex_analysis/40981/?x=OUE
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