EURUSD Weekly Technical Outlook
The EURUSD market is sideways, but market operation is bearish. On the monthly time frame, market operation tested the 1.21900/1.24800 supply zone (red) in December 2020 but yielded to a bearish rejection; it made a retest of the zone in May suffering the same fate. In July, market operation printed an indecision candlestick with a bullish tinge. However, the interim market operation in August is bearish, but it is experiencing a bullish resistance as it tackles the 1.17300/1.16280 prevailing demand zone (green).
Market operation on the weekly time frame is bearish. However, it is experiencing a bullish pullback as it tackles the 1.17300/1.16280 prevailing demand zone (green) seen on the monthly time frame. A bullish candlestick, although relatively small, was printed last week. It is, however, an inside bar to the bearish candlestick printed two weeks ago. Thus, technically, we could see further bearish dominance this week, particularly if the 1.6280 area is significantly broken down, which may lead to the formation of an extended ‘M’ pattern.
Price action on the daily time frame is in a bullish mode and this may lead to a retest of the 1.18400/1.18920 prevailing supply zone (magenta). A bearish rejection of the zone would result in a southward rotation while a significantly bullish breakout may lead to market engineering for liquidity grab at the 1.19300 area before a bearish turnaround. The technical impulse favours bears more than bulls.
I may be wrong. Trade safe and prosper.
KP
The EURUSD market is sideways, but market operation is bearish. On the monthly time frame, market operation tested the 1.21900/1.24800 supply zone (red) in December 2020 but yielded to a bearish rejection; it made a retest of the zone in May suffering the same fate. In July, market operation printed an indecision candlestick with a bullish tinge. However, the interim market operation in August is bearish, but it is experiencing a bullish resistance as it tackles the 1.17300/1.16280 prevailing demand zone (green).
Market operation on the weekly time frame is bearish. However, it is experiencing a bullish pullback as it tackles the 1.17300/1.16280 prevailing demand zone (green) seen on the monthly time frame. A bullish candlestick, although relatively small, was printed last week. It is, however, an inside bar to the bearish candlestick printed two weeks ago. Thus, technically, we could see further bearish dominance this week, particularly if the 1.6280 area is significantly broken down, which may lead to the formation of an extended ‘M’ pattern.
Price action on the daily time frame is in a bullish mode and this may lead to a retest of the 1.18400/1.18920 prevailing supply zone (magenta). A bearish rejection of the zone would result in a southward rotation while a significantly bullish breakout may lead to market engineering for liquidity grab at the 1.19300 area before a bearish turnaround. The technical impulse favours bears more than bulls.
I may be wrong. Trade safe and prosper.
KP
Do your homework, follow the footprints of smart money
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