EURUSD moved pretty much sideways last week, finishing off in a bullish doji like candle. Week prior was a strong rally with bulls taking control and driving the price by over 500 pips. This week price is likely to remain bullish.
Lets quickly look at weekly chart:
Notice how price broke below rising Trendline in September and moved lower for next 4 weeks. Last two weeks has put an halt on that move and now bulls are looking to take control. We can expect continuation of long rally on small timeframes leading price back to rising trendline at around 1.4150
Price on Daily chart broke above its falling trendline and now looking to come lower to re-test this breakout before heading up. The nearest Resistance is offered by another trendline at 1.3910-20, break of which will send this pair further higher.
This week’s News calender looks fairly busy with several key economic data due to come out. Also keeping Eurozone situation in mind, caution is advised and its better to stick with strong trading signals only.
Forex Signal: Look for longs near the 1.3750-1.3800 area when price comes back to re-test breakout of falling trendline on Daily chart. If price continues to move up then new long opportunities open after it breaks out above 1.3910-20 area.
Currently there is no signal for the Sell side, we’ll wait for price action to develop this week and then go from there.