EUR/USD Nears Last Resistance Zone for Bearish Outlook
- Daily: The EUR/USD rallied further this week and is going to enter an upper zone of resistance.
- If the market continues further but can find a top in the zone that starts at 1.3120 to 1.3250, it can still decline towards and even past the 1.1880 area.
- However, a breaks suggests continual rally towards 1.35 area.
- There is a bearish divergence developing. The slowdown in momentum can also be seen by looking for strong bullish candles. The strongest has waned each week.
- To confirm topping, I would like to see a strong day decline that can match and preferably be wider than the ATR.
- Another thing to monitor is the USD/JPY and USD/CHF. At the moment, the USD is very weak against these. If it is rallying, the chances for EUR/USD to find a top improves.
- Will increase monitoring of this pair next week.
