The EURUSD was indecisive this week, made a Doji formation on weekly chart. Price attempted to push lower but 1.4000 support area is still too strong to be broken and price closed significantly higher on Friday at 1.4311 after hit 1.4072. The H&S bearish scenario since the fall from 1.4695 remains intact. The problem is that we have the “twin brother”, an inverse H&S bullish formation as you can see on my hourly chart below as a result of another rejection below 1.4000. This technical bias conflict could make trading a little bit harder and more patience will be needed as price seems consolidating without clear momentum and direction as suggested by a triangle formation seen on daily chart. Personally I still prefer a bearish scenario at this phase but as long as 1.4000 support hold, nothing can be confirmed technically but consolidation. Another important technical aspect especially for intraday traders is the focus on 1.4320 level as movement above or below that area could determine the polarity. Bullish bias could continue if price able to move consistently above 1.4320, supporting the inverse H&S bullish formation at least testing 1.4500. On the other hand a movement below 1.4320 would keep the H&S bearish scenario remains intact retesting 1.4000 strong support area.
Have a great weekend and see you guys next week.
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