EURUSD Weekly Technical Outlook
Since hitting a 61.8 Fib retracement of the dominant downleg on the monthly time frame in January 2018, EURUSD market operation has disposed southwards in the main. Presently, market operation is around the 23.6 Fib zone where a bullish candlestick printed last month nested. Looking left, that area also adjoins a horizontal S/R reaction zone – the 1.11400/1.08650 zone (bound by purple horizontal lines).
On the weekly time frame, market operation has carved out a falling wedge pattern (red) and price action has been sideways for first three of the past five weeks just below the wedge resistance trendline. Two weeks ago, a bearish candlestick was printed for directional impact but last week bulls made a feeble attempt to counter only to print a miniature candlestick. In the main, bears seem to be more influential presently.
On the daily time frame, recent price action is respecting a rising trendline (blue) and as long as the trendline holds on a daily closing basis, we can expect the bulls to maintain their influence. However, we should be wary of the horizontal resistance zone around 1.112230/1.12100 (magenta) which may hinder a bullish drive and from which we may have a southward turnaround. I hold a bearish bias on EURUSD; but I expect a brief northward move first.
I may be wrong. Trade safe and prosper.
KP
Since hitting a 61.8 Fib retracement of the dominant downleg on the monthly time frame in January 2018, EURUSD market operation has disposed southwards in the main. Presently, market operation is around the 23.6 Fib zone where a bullish candlestick printed last month nested. Looking left, that area also adjoins a horizontal S/R reaction zone – the 1.11400/1.08650 zone (bound by purple horizontal lines).
On the weekly time frame, market operation has carved out a falling wedge pattern (red) and price action has been sideways for first three of the past five weeks just below the wedge resistance trendline. Two weeks ago, a bearish candlestick was printed for directional impact but last week bulls made a feeble attempt to counter only to print a miniature candlestick. In the main, bears seem to be more influential presently.
On the daily time frame, recent price action is respecting a rising trendline (blue) and as long as the trendline holds on a daily closing basis, we can expect the bulls to maintain their influence. However, we should be wary of the horizontal resistance zone around 1.112230/1.12100 (magenta) which may hinder a bullish drive and from which we may have a southward turnaround. I hold a bearish bias on EURUSD; but I expect a brief northward move first.
I may be wrong. Trade safe and prosper.
KP
Do your homework, follow the footprints of smart money
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