EURUSD Bearish Reversal Analysis
Price has broken the strong weekly support zone and initiated a reversal last week to the weekly level inside a channel with an impulsive 5-wave structure. The end of this trend is on a very strong resistance level (due to principal of polarity) with a divergence. Meanwhile, a daily downtrend structure has been broken as well. Therefore price has a very high bearish potential for the upcoming week as the correction of the the impulsive wave. This downtrend is at least to the bottom of the hourly channel. This bearish reversal can be also a retest for a broken daily structure.
In the longer term (next weeks) after this bearish movement, the price can either continue the bearish momentum as it has reversed from the weekly resistance zone, or it can initiate the next hourly impulsive wave (third wave), break the strong resistance zone, and confirm the daily structure breakout. However, the downtrend is expected.
In the longer term (next weeks) after this bearish movement, the price can either continue the bearish momentum as it has reversed from the weekly resistance zone, or it can initiate the next hourly impulsive wave (third wave), break the strong resistance zone, and confirm the daily structure breakout. However, the downtrend is expected.
Trade closed: target reached
Price has reached the target. It will slow down now as it has reached critical levels as explained. 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.