Last week $EURUSD's attempt to break above 1.14 created a False Break as this pair reached 1.15 and immediately reversed and declined back below the X point (1.146) of the bearish Bat mentioned in my previous analysis.
Once $EURUSD declined below 1.146, it provided a sell signal and the confirmation came later when $EURUSD declined below 1.14 and below the Triangle pattern.
With the price now below 1.14, $EURUSD may be heading towards 1.125, to re-test the structure there, that should act as support now. In addition to the structure zone, 1.125 comes with minor uptrend line and two daily Moving Averages that should also act as support.
That makes the 1.125 zone, an interesting buy zone during ECB week.
As long as the price remains above the 1.125 zone, the odds are that we will see EURUSD reaching 1.14 again in a second attempt to break out of this structure and to continue higher towards Crab completion.
If $EURUSD will decline below 1.125, it may head lower to re-test 1.11 and the daily uptrend line shown in the chart.
Despite shorting $EURUSD last week from 1.145, I'm still focused on the bullish side..
*Important - Draghi may plan more QE for us.. in that case, 1.14 may just be the top and $EURUSD could suffer sharp declines
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews - goo.gl/cp4Rn5
To subscribe to the newsletters - goo.gl/HXjCPV
Once $EURUSD declined below 1.146, it provided a sell signal and the confirmation came later when $EURUSD declined below 1.14 and below the Triangle pattern.
With the price now below 1.14, $EURUSD may be heading towards 1.125, to re-test the structure there, that should act as support now. In addition to the structure zone, 1.125 comes with minor uptrend line and two daily Moving Averages that should also act as support.
That makes the 1.125 zone, an interesting buy zone during ECB week.
As long as the price remains above the 1.125 zone, the odds are that we will see EURUSD reaching 1.14 again in a second attempt to break out of this structure and to continue higher towards Crab completion.
If $EURUSD will decline below 1.125, it may head lower to re-test 1.11 and the daily uptrend line shown in the chart.
Despite shorting $EURUSD last week from 1.145, I'm still focused on the bullish side..
*Important - Draghi may plan more QE for us.. in that case, 1.14 may just be the top and $EURUSD could suffer sharp declines
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews - goo.gl/cp4Rn5
To subscribe to the newsletters - goo.gl/HXjCPV
