EURUSD, like GBPUSD, bounced off from support area too after a sharp and sudden drop. We have a bullish engulfing candle on the Daily chart on Wednesday 30 May 2018. We might see more upside this coming week with 1.1855 (coincides with 38.2 fib level) a possibility. What we need here is a break of descending trendline to confirm more upside move short term.
Comment:
On the weekly chart, the euro put in a semi-bullish reversal candle to end the week. We may see a weakness in euro start of week, but as long as last week’s low at 1.1510 holds, outlook is neutral at worst, tentatively bullish for a recovery bounce in coming weeks.
Comment:
As we can see, price is still trading below H4 50EMA so that may prove as a barrier when price tries to climb higher. Coupled with 1.17, it could be a challenging resistance here. If we do indeed see a break above, 1.1855 will be in sight.
Comment:
You could see price tried to break above this zone (1.1680-1.1720) but failed a couple of times on H1. Price is now trading below both H1 50EMA & 200EMA. A momentum bullish candle here could see it break past these Moving Averages and also resistance area. I would not go long until I see a confirmed break of 1.1720 as euro weakness may still persist.
