EURUSD is forming a sideways movement in a range between 1.3435 and 1.3838. Another rise towards 1.3838 is expected later today. As long as this level holds, the price action in the trading range is treated as consolidation of downtrend from 1.4579 and one more fall to 1.3300 is still possible after consolidation. However, a break above 1.3838 resistance will indicate that the fall from 1.4579 has completed at 1.3435 already.



Daily Forex Forecast

EURUSD Weekly Summary: Triple bottom at 61.8% Fibonacci retracement: Bullish reversal?
As you can see on my weekly chart below, the EURUSD made another Doji this week, indicating another indecisive movement which has been happening in the last three weeks. The bearish channel indicates the major bearish scenario remains intact. However technically I see potential bullish reversal scenario indicated by the triple bottom formation around 1.3450/00 area which is at the same time a 61.8% Fibonacci retracement of 1.2327 – 1.5140 at least testing 1.3850 and the upper line of the bearish channel.

So what will happen next week might be crucial and have serious impact to the long term technical outlook. Break above 1.3850 area and violation to the bearish channel should confirm the bullish reversal scenario towards 1.4075 area, while a breakdown below 1.3450/00 area should be seen as triple bottom bullish reversal scenario failure thus potentially trigger significant further bearish scenario targeting 1.3100 area.



Have a great weekend and see you guys next week!

Euro sentiment, as defined by COT positioning, has turned from a bearish extreme.  After spending 5 weeks at a bearish extreme, the EURUSD may see a short covering rally next week.