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 towards 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"
Previous Weekly Report...
Last Week Price sold off from the June 50% level after testing the 2-day high and sending the market down towards the Weekly lows.
With price now trading back above the June 50% level, then the expectation is price is pushing UP towards June's highs, and towards 1.6271
If price is trading above the Weekly highs @ 1.5805 and breaking the past 3-week highs, then the expectation is price is rising higher into Friday.....
EUR/USD 3-day pattern
Last Week's expectation for a down move was a test of the 2-day highs and sell off, and thast's what occured.
Once price started trading above the 5-day 50% level on Thursday, the downward Weekly pattern was open to a reversal counter-trend pattern:- break of the 3-day highs.
Therefore a robust pattern early this week is to come down a test the 5-day 50% level, and then find support around Tuesday's 3-day lows before heading higher into Friday.
Basically the 3-day lows on Tuesday need to hold for a continuation upwards.
EUR 3-day and 90 pip Spirals
As we can see:- Friday's 3-day breakout and expectation price will come back and 're-test' the breakout before continuing with the Weekly Trend....
If the 3-day lows can hold.....
