For the week ahead....
This is a continuation to my previous chart, where the bearish flag managed to meet the objective at 1.26029.
EURUSD forms another bearish flag, and this time it is a bigger magnitude compared to the previous flag. After the break down from the flag, we see a doji followed by an higher close, this comes after a reasonable decline in this pair. Expect a retest of 1.27140 with a larger target to 1.1878 (or 1.9 rounded off).
To trade this pair, switch to H4 candlesticks for clues from price action at 1.2714 followed by a (delayed) confirmation from daily charts itself.
--------------------------
Alternate view: A daily close above 1.2714 will see a test of 1.2828 again which is a strong resistance level now.
----------------------------
Fundamental risks: US advance GDP and FOMC this week with Eurozone CPI and the bank stress tests results tomorrow.
This is a continuation to my previous chart, where the bearish flag managed to meet the objective at 1.26029.
EURUSD forms another bearish flag, and this time it is a bigger magnitude compared to the previous flag. After the break down from the flag, we see a doji followed by an higher close, this comes after a reasonable decline in this pair. Expect a retest of 1.27140 with a larger target to 1.1878 (or 1.9 rounded off).
To trade this pair, switch to H4 candlesticks for clues from price action at 1.2714 followed by a (delayed) confirmation from daily charts itself.
--------------------------
Alternate view: A daily close above 1.2714 will see a test of 1.2828 again which is a strong resistance level now.
----------------------------
Fundamental risks: US advance GDP and FOMC this week with Eurozone CPI and the bank stress tests results tomorrow.
