Forex Marketz Daily Forex News – Fully Markets Update
Weekly EUR/USD Technical Analysis
We are seeing the price range tighten in the EUR/USD Forex market since hitting a high in May from the March low. There is the possibility of seeing a broader range this week but there is also a distinct possibility of breaking the support this trading week. Another, more interesting scenario is setting itself up. One that is more bearish and very similar to what we say in May of 1997. This is pre euro trading but we calculate a pre trading plot to compensate. If you look at price behavior it is striking similar.
The price action in 1997 and then in 2015, price action plunged in the month of March. Note the RSI in both years for the weeks of March 3, 1997 and March 9, 2015 are the extremely similar. These correction lasted in the week of May 19, 1997 and May 11, 2015. In 1997, the euro saw a sharp sell off during the week of August 4, 1997 before seeing it correcting higher to the May high. If the charts hold up, then we could see something similar happen now. Look for the EUR/USD Forex market to dip to 0.9839/40 then recover back to 1.1450 to 1.4060 area.
Weekly Trade Strategy
With the tight price action indicating no directional trade this week, for no I will opt to stand aside before a short euro trade in line with my overall bearish EUR long term outlook comes along. All bounces higher will be treated as corrections for a possible short EUR/USD trade.