EURUSD is in focus this week with the Italian referendum and the monthly ECB meeting. Here's a brief list of what we see in EURUSD chart:
1. EURUSD is still inside a weekly trading range (1.05-1.114). Last week the bottom of the range held as support. 2. 1.05 is also the completion zone of a monthly bullish AB=CD pattern. 3. Inside the range we have two bullish patterns - AB=CD and Gartley. 4. 1.08 and 1.1 are the two short term target zones in case of a bullish move. 5. In case of a bearish breakdown - EURUSD can hit parity or 0.9 (completion of a bearish Bat)
Point number 5 obviously will become relevant in case of an extreme bearish move but considering the fact that EURUSD has been trading inside a weekly range for about 2 years (!) I expect the next move to be a significant one. In a bearish breakdown scenario, EURUSD can definitely hit parity ... and below.
I tend towards the bullish side here but we will have to wait and see how the markets will react to the Italian vote
Read more about the Euro and other trading scenarios in the Weekly Markets Analysis - Link in signature
Comment
⋅
EURUSD reached first target zone of bullish scenario (point number 4) Now big test for the EURUSD as DXY also testing strong support (100$)
Comment
⋅
We hit target 1 (1.08) and we got back to the bottom of the trading range (1.05). Focus is now on the Dollar and the Fed. 1.05 is the key zone next week. Stay tuned and read more in the Weekly Markets Analysis
Comment
⋅
1.05 in focus this week. Potential false break scenario described in my newsletter this week (link in signature) with a broadening pattern forming on the daily chart. EURUSD can decline to 1.04 and touch the bottom of the pattern - the question is will it climb back up and close above 1.05. That will make a false break Basically we are right where we were last week only with higher volatility potential
Comment
⋅
We are still inside the trading range. 1.04 held as support last week. 1.04 will remain in focus this week and now the Fast Daily MA line is below the price and provides additional support.
Read an update in this week's newsletter (link in signature)