EUR/USD Weekly Technical Outlook
EUR/USD’s strong rise last week augurs a consolidation pattern from 1.1464 has completed at 1.1217 already.
Initial bias is on 1.1464 and breakout will confirm this.
In such case, EUR/USD will target 1.1713 resistance next. But, expect strong resistance from 38.2% Fibo retracement of 1.3993 to 1.0461 at 1.1810 to limit Northside and bring on a larger down trend resumption eventually.
On the Southside, a clear break of support at 1.1217 will signal a near term reversal.
The bigger picture
The overall price actions from 1.6039 long term top is seen as a technical corrective pattern with fall from 1.3993 as the 3rd leg. Price actions from 1.0461 are seen as a correction to fall from 1.3993. A clear break of 1.0461 will extend the decline from 1.3993.
On the Northside
A clear break of support at 1.2042 turned resistance is needed to be the 1st sign of a trend reversal. Baring that stay Bearish and expect a new low below 1.0461 later.
In the long term picture
Price actions from 1.6039, the Y 2008 high, is seen as a corrective move.
There is no clear technical sign that it is completed yet, so still expect more Southside towards 0.8223 low as long as 1.2042, the Key resistance holds.
Have a terrific week.
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