EURUSD meets strong resistance and looses momentum
|The last week of the year was catastrophic for the USD. EURUSD enjoyed the ride north, which actually started in the middle of December. The last 4 trading days after Christmas were especially good for the EURUSD. The pair climbed vastly higher, creating new higher highs and lows every day, almost without any bearish interference.
As EURUSD is not a Bitcoin, this surge had to eventually stop. Not for a reversal but at least for a small taking profit action, so in other words – a correction. Perfect place for that was the resistance around the 1.2070 (orange colour). This area looked good for the potential bears as it was the lowest point in the 2012 and highest one in the 2017, so a crucial, long-term S/R level.
The price bouncing from this resistance is not a surprise. We have Thursday already and the price is drawing an ugly (for buyers) shooting star candlestick formation on the weekly chart. If this W1 candle will hold till the end of the week as it is now, that will be a red light for the bulls and a potential signal for a bearish reversal. Long-term sentiment for the EURUSD definitely stays positive but we have to be aware of a possible correction, especially that: 1) the place is good to sell now and 2) we are after a very strong upswing (360 pips in few weeks). All that together allows us to be slightly more bearish for the EURUSD in the short-term.
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