Not surprisingly EURUSD has bounced in London session making new weekly highs after the price has closed above 1.0920 on Friday. The pair was given additional boost after good German IFO report. German IFO represents one of the most important indications of an overall economic health. It is an early sign of a future investing and spending.
The pair perfectly touched 1.1113 as we could see then reversed. Currently the price is contained within a neutral territory just above the Rising Wedge and below double trend line confluence. If the pair proceeds to test 1.1113 again it could be an early sign of reversal towards 1.0920 then 1.0875 and 1.0780. We could see ( marked as blue rectangles ) historical sellers which are making double trend line confluence. It also rejecting H4 camarilla PP and 78.6 fib. If we get H4 close below 1.1080 it could give additional momentum to bears towards lower targets.
However for this scenario to be valid,1.1180 must stay unbroken (H5 and 88.6). We need to pay attention to yellow marked area (1.1115-1.1080-1.1055) as the next price movement will depend of the rejection of 1.1115, H4 close below 1.1080 and momentum break of 1.1055. If the price fails to do that, it could proceed towards 1.1185 boosted by month's end profit taking and general lower liquidity during holidays.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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