EUR/USD started last week by pushing lower but was quickly brought into before reaching any clear level of support or near-term ascending trend line. Prices soared on Thursday meaning that the pair reclaimed it previous heights around the resistance at 1.2140. The pair closed the week just beneath the resistance. It is still a level where we haven’t seen a daily close above – yet.
The sideways movement experienced last week was not unexpected after the extremely bullish moves from the week prior. It would be logical for price to ‘take a breather’ here before making it’s next move. We did not get an instant retracement from the resistance at 1.2140, which means there is still a considerable bullish appetite.
Going into the coming week we will still be on the lookout for bearish pullbacks, with the first possible point of entry being a touch against the daily ascending trend line. If we get a break through and close above the resistance level at 1.2140, we will be watching for pullback to retest the level and confirm the pairs position. A close above 1.2140 could then send price onwards to 1.2410.
The sideways movement experienced last week was not unexpected after the extremely bullish moves from the week prior. It would be logical for price to ‘take a breather’ here before making it’s next move. We did not get an instant retracement from the resistance at 1.2140, which means there is still a considerable bullish appetite.
Going into the coming week we will still be on the lookout for bearish pullbacks, with the first possible point of entry being a touch against the daily ascending trend line. If we get a break through and close above the resistance level at 1.2140, we will be watching for pullback to retest the level and confirm the pairs position. A close above 1.2140 could then send price onwards to 1.2410.