EUR/USD - test of descending weekly trend lines again this week?
From a technical analysis standpoint, at the beginning of last week, EUR/USD price was caught in a zone of confluence composed of the resistance level at 1.1880, and the descending weekly trend lines, which have not yet been broken. The zone also fell nicely as a retest of the previously broken ascending daily trend line. Price rejected the zone convincingly, and by Wednesday, price was back at the support level of 1.1745. Bouncing perfectly from this support zone, EUR/USD made a bullish move higher later in the week.
So what should you be looking out for in the week ahead? For price to continue bearishly, a break below the new ascending daily trend line will be required. A break and close below this and the support at 1.1745, would likely mean a return to 1.1615. However, price could easily bounce from the ascending trend zones on the 4H and daily timeframes, continuing higher. Zooming back out to the weekly, we are still convinced price is respecting the weekly trends and long term we are generally more bearish than bullish. However, near-term, there is no convincing bearish trend, so we will be staying clear of this one until the market calms.
So what should you be looking out for in the week ahead? For price to continue bearishly, a break below the new ascending daily trend line will be required. A break and close below this and the support at 1.1745, would likely mean a return to 1.1615. However, price could easily bounce from the ascending trend zones on the 4H and daily timeframes, continuing higher. Zooming back out to the weekly, we are still convinced price is respecting the weekly trends and long term we are generally more bearish than bullish. However, near-term, there is no convincing bearish trend, so we will be staying clear of this one until the market calms.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.