EURUSD Weekly Technical Outlook
EURUSD failed to maintain its northward momentum last week. On the weekly time frame, two weeks ago price action moved over 300 pips to break through a strong S/R zone and entered the next resistance zone where bears curtailed further upward move. Last week, bulls attempted to take price action further northward but failed to take out the high of the bullish candlestick formed a week earlier. In fact, price action printed a small doji-like candlestick. Nevertheless, it should be noted that the trend is still northward on the weekly time frame as an ascending trendline (chocolate) from the low of April 2017 is still intact. But we may expect a pullback as the location of price action is far from the mean. Alternatively, should bulls manage to take price action further northward, we may expect them to target the 1.25900 handle, which was last visited and crossed southward in December 2014.
On the daily time frame, price action has been ranging for several days. Last week Friday, bears managed to push price action southward but failed to breach below the base (magenta) of the consolidation formed several days earlier. As price action is at a resistance zone, we may see further sideways operation or pullback before any further northward momentum can be maintained. A likely target of such southward pullback is the immediate support around the 1.22880 area. Should bears become too strong for bulls, we may see the pullback retest a support trendline (navy) from the low of December 18, 2017. Such a move is likely to be corrective in nature. However, should the support trendline (navy) be breached southward on a daily close basis, it may open up a technical reassessment of the market on this pair.
On the H4 time frame, price action has been respecting an ascending trendline (magenta) for quite a while. However, recently, price action has been hitting the trendline too often; which suggests a possibility of a southward breach of the trendline. Should that breach materialize, we may see bears target the immediate support around the 1.22880 area.
I may be wrong. Trade safe and prosper.