EURUSD Weekly Technical Outlook
The EURUSD market has been in a consolidation for quite a while. On the monthly time frame, the market is operating in a downward sloping channel (red), which corresponds to a complex correction after an impulsive wave, apparently the 5th wave of an Eliot Wave analysis. Presently, price action is sideways in a horizontal S/R zone which is in confluence with the monthly pivot.
On the weekly time frame, price action has broken below an ascending trendline (green) traceable to December 2016 and is now operating within a channel created by two descending lines (black and lue) traceable to March 2018. The market tested the trendline (green) a couple of times and flipped it as resistance. However, the southward momentum has been limited. Last week, the market printed a small bearish pinbar within an area of value, and we may see bears take the market further southwards this week. The 1.12140/1.11450 zone is likely to be a target of any bearish move. However, should bulls wrestle control of price action, they may target the 1.15140 area.
On the daily time frame, the market is operating in a descending wedge (magenta). Recent price action has formed a topping /bearish pattern at an area of value and we may see bears take price action further southwards this week.
On the H4 time frame, the market is operating around just below the 61.8/50 Fib zone of the most recent downward swing; from the high of 1.15120 to the low of 1.12340. I expect bears to seize the initiative for a bearish continuation this week. But we may see a brief retracement northward in the early part of this week first.
I may be wrong. Trade safe and prosper.