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EURUSD: Defended by double bottom formation and Fibonacci level.
[B]EURUSD Outlook[/B] Yesterday [B]EURUSD[/B] made a minor recovery after suffered sharp losses from 23/04/2008. But this recovery may means something significant from technical view. The pair bottomed at [B]1.5516[/B]. On daily chart, this fact is seen as a double bottom formation with 03/04/2008 low at [B]1.5510[/B] (see Chart #1). This fact become important to my technical analysis, since I believe that the major bullish outlook for [B]EURUSD[/B] is not over yet. This double pattern formation could be a early trigger for [B]EURUSD[/B] to defend it's major bullish trend. From Fibonacci retracement point of view, this double bottom formation is right at 38.2 % Fibonacci retracement from [B]1.4702[/B] to [B]1.6019[/B] (also see Chart #1). [IMG]http://i29.tinypic.com/160wg92.jpg[/IMG] Chart #1 So, the major bullish uptrend for [B]EURUSD[/B] has 2 strong “defender” at this stage. A failure to break this double bottom formation could stop the short/medium term bearish momentum, while a break from this formation opens the door to [B]1.5341[/B] and end the major bullish outlook. Have fun!