EURUSD has successfully pushed up to level 2 for week 52, anyone who long this pair since last week would be able to see a good profit. However, because of their price movement in week 50 to 52, it prompted me to question my outlook on this particular pair using my usual trend following on 1H chart.
We have seen this pair went up to a bullish level 2 zone, which usually means that it will continue higher to level 3. However, this time around, I will be looking at EURUSD reversing at level 2. I interpreted the level 1 as a high low rest and a reversal pattern in its level 2 zone. What we see at level 2 is a double top, which will set the reversal stage for 2019, week 1. A double top occurring in a bullish level 2 zone can also continue its upward trend by simply failing to break the previous low formed in zone 2, or creating a flag pattern. I am more towards a reversal this time around because it seems that the weakening of USD is not going to be permanent and a government shutdown occurred in week 52 did not bring this pair a lot higher. So it seems that the overview of EURUSD is more bearish than bullish. Therefore I am giving a higher probability to an upcoming bearish trend in week 1 of 2019.
I hope all traders will continue with their good performance and make consistent profit from the market!
If you have any thoughts on EURUSD's movement for the coming weeks, please share them below, I look forward to learning and staying profitable together. Please help me like this analysis, and follow me for my weekly updates!
We have seen this pair went up to a bullish level 2 zone, which usually means that it will continue higher to level 3. However, this time around, I will be looking at EURUSD reversing at level 2. I interpreted the level 1 as a high low rest and a reversal pattern in its level 2 zone. What we see at level 2 is a double top, which will set the reversal stage for 2019, week 1. A double top occurring in a bullish level 2 zone can also continue its upward trend by simply failing to break the previous low formed in zone 2, or creating a flag pattern. I am more towards a reversal this time around because it seems that the weakening of USD is not going to be permanent and a government shutdown occurred in week 52 did not bring this pair a lot higher. So it seems that the overview of EURUSD is more bearish than bullish. Therefore I am giving a higher probability to an upcoming bearish trend in week 1 of 2019.
I hope all traders will continue with their good performance and make consistent profit from the market!
If you have any thoughts on EURUSD's movement for the coming weeks, please share them below, I look forward to learning and staying profitable together. Please help me like this analysis, and follow me for my weekly updates!
