Weekly Outlook for June 4th – June 8th 2012

The EURUSD found support last Friday and closed the day higher. We can see the market was quite extended to the downside recently, so a retrace higher is not a surprise. If price continues to retrace higher this coming week, we will watch the resistance zone marked below for potential price action trading sell signals to rejoin the downtrend. We can see this resistance zone also lines up with the 8 and 21 day EMA dynamic resistance layer.