EURUSD is facing a major point of confluence. 1.206 - 1.209 is the area based on a support line of a rising channel and December's local daily horizontal support.
With a quite strong bearish momentum this week, we must consider two potential scenarios:
Bearish - in case of a daily breakout of the underlined confluence zone, the market can fall even to lower structure levels. 1.195 is the next closest strong horizontal support to consider as the goal for sellers.
Bullish - we must remember that technically EURUSD is still trading in a bullish trend . In case if the confluence area is respected and we see clear reversal clues, we may expect a bullish reaction. The next closest resistance will be 1.22
For now, I am still bullish biased and on the side of the major trend. But who knows!
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Bearish unless there are major news. Biden's stim package was rumoured and there is always a rule buy the rumour sell the fact. USD needs a correction before further downside and I think EURUSD needs to visit 1.20 upcoming week, retest the breakout and carry on.
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