The EURUSD had a strong bullish correction this week, topped at 1.2985 and closed at 1.2930 after hit 1.2625 last week. We have three consecutive bullish daily candle stick since Tuesday. As you can see on my h4 chart below, price is now testing the EMA 200 resistance and the 23.6% Fibonacci retracement of 1.4246 – 1.2625 located around 1.3000. As long as moves below the EMA 200, the major bearish scenario since fell from 1.4246 should remain intact and the current strong bullish momentum should be seen just as a normal corrective movement, but a clear break and daily close above 1.3000 could trigger further bullish scenario testing 1.3160 – 1.3250 area. On the downside, key support area is seen around 1.2800 – 1.2750. A failure to make a clear break above 1.3000 and a clear break/daily close back below 1.2800 – 1.2750 could end the current bullish correction phase testing the 200-monthly-EMA around 1.2500.
Have a great weekend and see you guys next week.
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