The EURUSD attempted to push lower this week, bottomed at 1.2209 but whipsawed to the upside, topped at 1.2465 and closed at 1.2384. This fact keeps the bullish correction scenario intact. Technically we are in critical phase here, whether we will have a bullish reversal or bearish continuation scenario. Here is what I have in mind this morning:
1. Bullish Reversal
This scenario was first indicated by the movement above the falling wedge formation.
Price is now testing the trendline resistance. A break above the trendline confirms the
bullish reversal scenario at least targeting 1.2645 before testing 1.3120 region.
2. Bearish Continuation
Let’s use a little imagination here. If price touch 1.2465 area but fail to break above
that area, a double top formation could be formed and a break below 1.2200 area confirms the bullish failure and continue the bearish scenario testing 1.1800 and 1.1600 area. On the other hand, if price break above 1.2465, the bullish reversal scenario will be confirmed.
I am making prediction about potential scenarios, but the most important thing in trading is how we react to the facts next week. Have a great weekend and see you guys next week.
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