After a false break out above 1.15 I warned through my daily analysis on EURUSD that there is a danger of falling all the way to 1.1320. Yesterday prices fell below 1.13 but closed above it. Price had broken the upward sloping trend line support…..is this another fake signal. Too early to tell. What we know for now is that the weekly candle is shaping up to be a bullish reversal formation. A weekly close above 1.1380-1.1390 would be a very bullish sign imo.
With a weekly high around 1.1395 made on Wednesday, price dipped all the way to 1.1289 and now are 100 pips higher. This weekly candle if we close above 1.1380 (the higher the better) would be a bullish hammer pattern. This is a reversal pattern. If this is the case then my bullish long-term scenario will remain intact.
Key support remains at 1.1320-1.13 area. Bulls however will need to show more signs of strength and continued signs of an up trend. First they will have to break above short-term resistance at 1.1425-1.14.
A confirmed bullish reversal on a medium-term will be given only when we break above 1.15 again.
Thank you for taking the time to catch up on my thinking.