The EURUSD made another indecisive weekly movement this week, formed a Doji on weekly chart. On daily chart below we can see that the pair still trapped in range area of 1.4405 â€“ 1.4180. We need a break from the range area to have a clearer view whether we will have bullish continuation or a bearish reversal scenario. Here are three potential scenarios for the upcoming week:
Bullish continuation scenario: If we have a breakout above 1.4405/46, that would be a bullish continuation scenario confirmation, targeting 1.4719 area (December 18 high).
Bearish reversal scenario: If we have a break below 1.4180 and trendline support (blue), that would be a bearish reversal scenario confirmation targeting 1.3750 area.
Range Trading: Even after some important economic data from the Euro zone and US, the pair still trapped in the range area. In my opinion, with the lack of significant economic data from the Euro zone next week, it is more likely that the pair still trapped in the range area. So, the best trading strategy in range market is to buy near the lower line/support (1.4180) or to sell near the upper line/resistance (1.4405/46) with a very tight stop loss.
Have a great weekend and see you guys next week