The EURUSD made another bearish momentum this week after failed to break above 1.4030 on Wednesday, bottomed at 1.3585 but closed a little bit higher at 1.3664 on Friday, formed a hammer candlestick pattern, as you can see on my daily chart below. I still prefer a bearish scenario next week with potential technical target at least around 1.3490 – 1.3400 area but potential upside pullback suggested by the hammer is something that we must not ignore. Immediate resistance to be tested is around 1.3750 area. Break above that area could trigger further bullish correction testing 1.3850 – 1.3900 area even back towards 1.4000/30 region. Initial support at 1.3585 (Friday’s low). Break below that area should continue the bearish scenario and potentially cancel the hammer candlestick bullish scenario.
Have a great weekend and see you guys next week