The EURUSD attempted to push higher this week, topped at 1.4344 but further short term technical bullishness was rejected, closed lower at 1.4155 after some bad news from the Euro zone triggered sharp Euro sell-off on Friday. Now let’s break it down to a multi time frames technical outlook to get a broader view. From a weekly and daily chart perspective, the Euro is still in a bullish outlook since the strong bullish momentum from 1.1875 and price is still moving inside a bullish channel as you can see on my daily chart below. Another information we have from daily chart is that price is moving in a range area between 1.4340 – 1.4050 since May 13. The failure to make a clear break above 1.4340 and the closing price at 1.4155 keep my medium/h4 chart bearish outlook since the fall from 1.4939 remains intact (see the red box area), although Euro started the week with some upside pressures which halted the short term bearish bias, still testing 1.4000 strong/psychological level. A clear break below 1.4000 could trigger further bearish pressure testing 1.3860 – 1.3750 support area and the lower line of the bullish channel. So, the way I see it, the Euro still have some more spaces for further bearish pullback in upcoming week. My bearish medium/short term mode remains activated and only a clear break above 1.4340 could be a threat to my medium term bearish mode testing 1.4520. From a long term perspective on daily/weekly chart, if the bearish pressure continues, what will happen around 1.3750 and the lower line of the bullish channel could determine whether the bullish long term outlook remains intact or a bearish reversal scenario is on its way.
Have a great weekend and see you guys next week.
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