EURUSD Weekly Technical Outlook
The EURUSD market is still largely disposed southward, operating in a multi-year descending channel (red). However, on the monthly time frame, presently price action is operating northwards and respecting a minor ascending trendline (black). Recent operation has lacked momentum, been mainly sideways and limited within a horizontal consolidation (bound by blue horizontal lines).
On the daily time frame, price action is consolidating along an ascending trendline (black) seen on the monthly time frame. Presently, price action is disposed northwards and we may see bulls target the immediate horizontal resistance around the 1.16470 area. A northward move is likely to be maintained as long as the ascending trendline holds on a daily closing basis. However, this should be seen in the context of a ranging market.
On the H4 time frame, we should be wary of some barriers to a northward move: some minor horizontal resistance and a minor descending trendline (yellowish green) from recent price action. Nevertheless, a major worry is likely to be the longer descending trendline (magenta) from the high of April 17, 2018, particularly if we have a bearish setup in confluence with, or at, the horizontal resistance around the 1.17240 area.
Personally, I am stepping aside from this market. I am not going to be taken in by any bullish mode. I will wait for a good bearish setup at an area of value.
I may be wrong. Trade safe and prosper.