EUR/USD Weekly Review September 19, 2011

The downside movement stopped last week after hiting our mentioned support zone 1.3700-1.3400.

1. Retest of the broken downtrend line which started September 2009 and broken in March 2011.

2. The lower limit of the bearish channel that started in May this year.

3. Multiple Previous congestion zones marked on the chart.

4. 61.8% Fibonacci level of the marked weekly swing from 1.2900 to 1.4880.

We had bullish weekly candlestick indicating importance of this support.

On the daily chart, the bullish rejection out of the support zone is obvious.

We may see a retest of the Fibonacci level resuming the bullish direction.

It's important to mention that the pair has a considerable resistance at 1.3975.

On the 4H chart, We may be having higher low to be formed at 61.8% Fibonacci level of the recent swing 1.3495 - 1.3935.

This will be confirmed if the pair manages to stabilize above this Fibonacci level on the short term.

We may also have a retest of the lower limit of the long term channel marked on the chart.