EUR/USD Weekly Outlook
EUR/USD's fall accelerated to as low as 1.2919 last week, just missed 161.8% projection of 1.3993 to 1.3502 from 1.3700 at 1.2906. A temporary low as in place and initial bias is neutral this week for some consolidations. Upside of recovery should be limited by 1.3159 resistance and bring another decline. Break of 1.2906 will target 1.2755 key support level next.
In the bigger picture, overall price actions from 1.6039 long term top is viewed as a corrective pattern. Fall from 1.3993 is tentatively viewed as the third leg of such pattern. Break of 1.2755 support will pave the way from 1.1875 low and below. Even in case of a rebound, we'll stay bearish before firm break of 55 days EMA (now at 1.3366).
In the long term picture, EUR/USD turned into a long term consolidation pattern since reaching 1.6039 in 2008. Such consolidation is still in progress. And break of 1.2042 will likely pave the way to 61.8% retracement of 0.8223 to 1.6039 at 1.1209. Before that, EUR/USD would continue to engage in sideway trading between 1.1875 and 1.5143 in medium term.
At Your Own Risk!!! ;)
