The EURUSD was volatile but indecisive this week, made a Doji on weekly chart. Price attempted to push lower, slipped below 1.3500, bottomed at 1.3482 but whipsawed to the upside, topped at 1.3794 and closed at 1.3749 on Friday. The strong bullish momentum since Thursday is still considered as a corrective movement and my overall bearish outlook since the fall from 1.4246 and the breakdown below the trend line support (red) remains intact. Price is now testing EMA 200 (white) and the 38.2% Fibonacci retracement (of 1.4246 – 1.3482) resistance area as you can see on my h4 chart below. Although my overall bearish outlook remains intact, EMA 200 indicator has been flat since October suggests a non trending condition. While my short term intraday bias turns bullish now, only a clear break above 1.3870 (50% Fibo) would be a threat to the bearish outlook, testing 1.4000 area. On the downside, key support is seen around 1.3600 – 1.3650 region. A clear break and daily close below that area would keep the bearish scenario strong, retesting 1.3482 even lower.
Have a great weekend and see you guys next week.
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