EUR/USD Weekly and Daily chart
Last week was a 4th Week reversal pattern after a 3-week UP move, as previously mentioned in last Week’s Report.
Now price is trading at a very important level in any trend:- the Monthly 50% level. These levels are where new trends develop as price ‘thrust’ away from, and by the look of the price action the EURO looks to be reversing back down towards the June lows…
EURO Daily and intra-day charts.Last Week’s expectation was price was reversing back down into the Weekly 50% level and then lower into Thursday’s 3-day lows. However the 3-day lows didn’t hold which verified the 4th Week reversal pattern.
With any breakout of the 3-day pattern, price will normally come back and test the break zone before it continues with the Weekly trend, and that’s what occur on Friday.
In conclusion:- the only view I have is based on the price action in front of me, which suggests a test and reject pattern on Friday which aligns with the June 50% level will more than likely send prices down…
As long as price remains below the 5-day 50% level then I don’t have any view other than price is moving towards the 3-day lows next week, and could continue down toqards June's lows.
Note:- Ideal short pattern is also a retest of the 2-day highs on the 3rd day and sell-off from a higher Daily open
