The EURUSD had a significant bullish momentum this week, slipped above my descending triangle and now struggling around the upper line of the triangle as you can see on my h4 chart below. While my intraday bias has turned bullish now which started since the appearance of the hammer formation on daily chart last week, from h4/daily chart point of view it is too early to say that Euro is ready to continue its bullish weekly outlook. We had a false breakout above the triangle before, which triggered significant bearish momentum, hit 1.3836 and that could happen again. Also, price is still making lower highs since the fall from 1.4939 which can be easily seen on daily chart. Immediate resistance to be tested by the current intraday bullish pressure is seen around the trend line resistance (white) and 1.4480 – 1.4500 resistance area. A clear break above the trend line resistance would give further confirmation of the violation to the descending triangle, not only testing 1.4577 region, but could bring back the h4/daily chart bullish bias testing 1.4695 even higher. On the downside, bearish warning is given by the appearance of the rising wedge formation. A failure to stay above the descending triangle and a break below the rising wedge would confirm another false breakout scenario which could trigger another bearish pressure testing 1.4000 – 1.3850 support area.
Have a great weekend and see you guys next week.
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