EUR/USD weekly chart price recently went to a high of 1.38321 and the next bar showed an immediate bearish reaction. Based on this reaction I think that price might continue to move down to around 1.3400 before deciding what to do next. Another possibility is that price could fluctuate between the recent high of 1.38321 and the recent low point of 1.3200 (which looks like a potential support area) before it considers the 1.3400 level.

The 1.3400 target is close to the 61.80% fibonacci retracement level in the charts below and there appears to be a slight bullish trend which is shown by the two trend lines. Because of the recent price action, the slight uptrends and the fibonacci level, I think that 1.3400 is a possible target.

I have attached two modified screenshots of weekly EUR/USD charts from Jforex. In each chart I have created 4 bars (inside the white rectangle) for the November month to show what kind of price action I think might take place:

EUR/USD Weekly chart 1:

















In the first scenario I think price could reverse to retest the recent high area and then move down to the 1.3400 area. I think price might move slightly past 1.3400 and then pullback to close at around 1.3400. In this case I think that the 1.3400 level is probably weak and might not hold for long.


[b]EUR/USD
Weekly chart 2:[/b]

















Alternatively I think price might continue it's recent bearish reaction and break past the 1.3400 level and then possibly move back up to around 1.3400 after creating a low point in the 1.3400 - 1.3200 range.

Conclusion:

I think that there is a good possibly of a short term bearish trend for EUR/USD but market conditions can change very quickly. It will be interesting to see what happens.
Translate to English Show original