EURUSD Weekly Summary: Bearish scenario still needs further validation
The EURUSD attempted to push higher this week, topped at 1.3498 but whipsawed to the downside, bottomed at 1.3132 and closed at 1.3187. I still prefer a bearish scenario for this pair, but would need a consistent move below 1.3170 to continue the bearish pressure. I have three technical bearish clues as you can see on my chart below. First, the rising wedge formation has been violated to the downside. Second, we have a gravestone Doji on weekly chart. Like the rising wedge formation, a gravestone Doji usually appear after a bullish run and signaling potential bearish reversal, but regardless of the previous movement, this candle stick pattern shows indecisive market but with more downside bias. Third, CCI still in negative territory on h4 chart. In the upcoming week, a clear break below 1.3132 would give us further validation to the bearish scenario targeting 1.2968 1.2920 support area. On the upside, immediate resistance is seen around 1.3280. Break above that area could trigger further bullish momentum re-testing 1.3359 and 1.3438 resistance levels. Bullish scenario would have further validation with a clear break above 1.3498 (the top of the gravestone Doji).
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