It was just as forecast last week that EURUSD continued to drop further.
While the bearish momentum seems strong (and definitely sellable in the short-term), it will face very strong demand in this coming week.
The first thing we should always bear in mind is that EURUSD already has a strong reversal signal since it broke above a 12-year falling trendline (as seen in the monthly timeframe).
There's also a successful retest of the 12-month falling trendline before EURUSD continued to climb.
Other than that, we can see strong confluence at the 200ma on this chart with a strong demand zone and indicator an overbought market.
Therefore, we can continue to sell int he smaller timeframe but exit as soon as a wave of trend is completed.
Otherwise, wait patiently for signs of reversal as it reaches 1.18 region to long EURUSD while an ABC correction is completed.
While the bearish momentum seems strong (and definitely sellable in the short-term), it will face very strong demand in this coming week.
The first thing we should always bear in mind is that EURUSD already has a strong reversal signal since it broke above a 12-year falling trendline (as seen in the monthly timeframe).
There's also a successful retest of the 12-month falling trendline before EURUSD continued to climb.
Other than that, we can see strong confluence at the 200ma on this chart with a strong demand zone and indicator an overbought market.
Therefore, we can continue to sell int he smaller timeframe but exit as soon as a wave of trend is completed.
Otherwise, wait patiently for signs of reversal as it reaches 1.18 region to long EURUSD while an ABC correction is completed.
