The EURUSD bullish momentum was paused this week. A quick look at h4 chart reveals that price is moving in a range area of 1.4518 – 1.4350. About few weeks ago, I wrote that the current major bullish movement is characterized by some bearish/sideways consolidation and bullish run continued after made a break above the range/previous high. As you can see on my daily chart below, the bullish momentum continued last week after a clear break above 1.4250, which is the previous high after a minor bearish correction/consolidation to 1.4025. From this point of view, the current major bullish scenario should remains strong as long as price stays above 1.4250 and a clear break above 1.4518 could continue the bullish run testing 1.4700 – 1.4800 area. Now let’s take a look at CCI. During the bullish run and some consolidations/corrections, CCI never fall below zero line suggests strong bullish view. A break below 1.4250 (23.6% Fibonacci retracement of 1.3427 – 1.4518) and daily CCI below zero line would be a threat to the current bullish outlook.
Have a great weekend and see you guys next week.
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