The EUR/USD was corrected lower significantly this week. On daily chart below we can see that price is now ready to test the lower line of the bullish channel indicating critical technical point. Violation to the bullish channel and a break below 1.2700 key support area could be a serious threat to the bullish outlook and potential bearish reversal scenario testing 1.2470. During the bullish movement we have some downside corrections but this time the correction is special. Now, for the first time since June 06 we have a bearish candle on weekly chart and it is a huge one. Immediate resistance at 1.2900 followed by 1.3050 area. We may see the bullish outlook back to its track by a movement above 1.3050 area.

Have a great weekend and see you guys next week.

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