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Last week bears failed to continue the downward momentum and end up losing battle to bulls which push EURUSD 1.32. This week we are likely to see continuation of bullish sentiment though it may not last too long.

Let’s look at EURUSD weekly chart:

Weekly Signals (click to enlarge)

EURUSD failed to brake below the Trendline last week and pushed up higher. There is a narrowing range that’s taking shape on weekly chart. It almost looks like an ascending triangle in an overall bearish weekly chart. Keep an eye as price move closer to trendline above at around 1.3290-1.3300

Daily chart below shows another trendline that formed last week. This line once broken will pave the way for EURUSD to climb higher towards weekly Trendline at 1.33.

Daily Signal (click to enlarge)

Most of the key economic indicators are due late in the week, hence we expect market to move slowly but pick momentum a bit later on in the week.

Forex Trading Signal : Look for opportunities to go long until 1.3300, once price gets there we can expect a small reversal. In case EURUSD moves lower then support at 1.3050 will come into play.

Last week we expected Euro to continue the bullish correction. EURUSD rose 2% last week, credit goes to reports of improvement in talks between Greece and creditors along with better than expected bond auctions from Spain and France.

Though this rally may not last much longer but we could very well try to ride it while it last.

Let’s quickly look at EURUSD daily chart:

Daily Signals (click to enlarge)

EURUSD broke above the trendline on daily chart and came back down to retest on Friday. We can clearly see that price bounced off from the trendline after retest which is a good sign that market is also monitoring the same trendline as us. This week we can expect price to continue moving up towards the next Resistance level at 1.3080 – 1.3100

Keep in mind the holiday in China and other Asian countries as they celebrate beginning of New Year. I won’t be surprised if we see thin markets for a day or two.

Forex Trading Signal : Look for opportunities to go long until 1.3100, once price gets there we can expect a small reversal. We will then wait for clear Breakout above 1.3100 before taking any long trades.