EURUSD Weekly Technical Outlook
The EURUSD technical market structure is bullish although we are having an increase in bearish pressure. On the weekly time frame, the 1.16010 to 1.23490 northward swing completed an 88.6 Fib retracement seven weeks ago in confluence with an outer rising trendline (red) traceable to April 2020. Presently, market operation is respecting an inner rising trendline (blue) from recent lows. Tow weeks ago, market operation made a bullish breakout from an area of consolidation that was in place for two weeks. However, there was no bullish follow-through last week as market operation printed a long-tailed doji-like candlestick with a bearish tinge that failed to break above the bullish candlestick of two weeks ago. This indicates that bulls are not fully in control of the market. Nevertheless, we cannot discount a bullish move in the early part of this week, perhaps to test the 1.22340/1.23245 area (red), which is the immediate significant horizontal resistance zone.
On the daily time frame, price action is bullish within a rising channel (blue) aligned with an inner rising trendline seen on the weekly time frame. However, it is presently tackling the consolidation at the 1.20600/1.21670 zone (purple) after a bullish move from the channel support trendline on Friday. Any bullish follow-through in the early part of this week may expose the 1.22340 handle, the lower boundary of the significant 1.22340/1.23245 horizontal resistance zone (red) seen on the weekly time frame. A bullish failure may incentivize a drive for a bearish rejection that may initially retest the 1.20600 lower-boundary of the 1.20600/1.21670 consolidation zone (purple)
On the H4 time frame, the technical market structure still favours bulls. However, price action is getting near to 1.21670, the upper boundary of a consolidation area seen on the weekly time frame. The area is susceptible to a bearish rejection. Technically, the order flow context offers an opportunity for a bullish move to grab liquidity before a bearish rotation.
I may be wrong. Trade safe and prosper.
KP
The EURUSD technical market structure is bullish although we are having an increase in bearish pressure. On the weekly time frame, the 1.16010 to 1.23490 northward swing completed an 88.6 Fib retracement seven weeks ago in confluence with an outer rising trendline (red) traceable to April 2020. Presently, market operation is respecting an inner rising trendline (blue) from recent lows. Tow weeks ago, market operation made a bullish breakout from an area of consolidation that was in place for two weeks. However, there was no bullish follow-through last week as market operation printed a long-tailed doji-like candlestick with a bearish tinge that failed to break above the bullish candlestick of two weeks ago. This indicates that bulls are not fully in control of the market. Nevertheless, we cannot discount a bullish move in the early part of this week, perhaps to test the 1.22340/1.23245 area (red), which is the immediate significant horizontal resistance zone.
On the daily time frame, price action is bullish within a rising channel (blue) aligned with an inner rising trendline seen on the weekly time frame. However, it is presently tackling the consolidation at the 1.20600/1.21670 zone (purple) after a bullish move from the channel support trendline on Friday. Any bullish follow-through in the early part of this week may expose the 1.22340 handle, the lower boundary of the significant 1.22340/1.23245 horizontal resistance zone (red) seen on the weekly time frame. A bullish failure may incentivize a drive for a bearish rejection that may initially retest the 1.20600 lower-boundary of the 1.20600/1.21670 consolidation zone (purple)
On the H4 time frame, the technical market structure still favours bulls. However, price action is getting near to 1.21670, the upper boundary of a consolidation area seen on the weekly time frame. The area is susceptible to a bearish rejection. Technically, the order flow context offers an opportunity for a bullish move to grab liquidity before a bearish rotation.
I may be wrong. Trade safe and prosper.
KP
Do your homework, follow the footprints of smart money
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