We are in a strong uptrend and it is expected to continue (DXY is getting weaker as well). I believe we will retrace then continue higher, possibly reaching 1.2200.
There is an area of high confluence around the 1.19950 area as support, the trend line and the 61.8 fib will all meet.
After being in an uptrend for sometime, we now see a head & shoulders pattern forming on the daily and 4H charts. This signals a trend reversal to the downside. Using fibs, it is likely we will see a retracement to either the 61.80% or 50.00% levels. Once this hits we can look for short entries.
There is a triangle pattern forming and price is reaching a level of high confluence. The bottom trend-line and support zones are going to cross. After this, I believe price reject off the 1.30200 level and keep heading up. If enough bullish momentum comes in, the triangle will break and we can even hit level 1.31600 and above.
Using the correlation to the DXY - there is a strong chance that EURUSD is going to hit support then reverse to continue the uptrend. Although we do need to watch price action at 1.18000. With everything happening in the US right now, the Dollar is weak, which in return is keeping the Euro strong.
Price is rejecting off 1.33200. Not only is this a key level, but it has proven to be a very strong resistance zone (and support in the past). We are also in a strong downtrend and have been for sometime. Trendlines on both the monthly and hourly timeframes strongly support this. Price is now at an area of high confluence and is presenting an opportunity to enter...
