Based on a price action analysis I see two potential scenarios for EURUSD next week:
Bullish Even though the pair is trading in a global bearish trend, since November we see a correctional movement. The market is steadily growing within a rising parallel channel.
Now the price is approaching its support. For now we may expect a bullish movement from that.
Bearish The channel that we earlier discussed can be perceived as a bearish flag pattern. Its support breakout will trigger a trend following move and a test of a current low.
I am still bullish and have a long position on EURUSD. But be prepared for both scenarios.
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typically a bullish retest of the demand zone would involve a rally starting from a clear local LOW ( below the demand zone), then after reaching a spike high returning to retest the DZ (about 50% down), then up up from there... IMHO If this is a retest this does not appear to be a typical pattern because the rally starts at the demand zone not below it... but lets see nothing is typical in this market these days
Karl51470
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False sell breakout of channel followed by long to break channel