EURUSD: Long Term Perspective & Trend Analysis

25 Agu 2020

hey guys,

I know that many of you are expecting a coming bearish movement on a daily on EURUSD.

analyzing a weekly time frame though, I want to warn you that the pair has still much space for a bullish continuation.

on a weekly, the price is clearly trading in a global bearish trend.
spring's covid bullish rally made the market set a higher low and triggered a bullish rally,
and it looks like a long term goal for buyers is 1.21 - 1.25 wide supply cluster.

this zone is based on 2008'th, 2010'th, 2012'th lows and 2018'th high.
in my view, a strong weekly bearish movement will most likely start from that area.

however, what makes me extremely cautious is the recent higher low.
usually, it is the first strong signal of a coming trend change.
if the above-mentioned zone is broken buy buyers, It will signify a long term bearish trend violation and start of a new long term bullish trend.

as always we can only speculate about the probabilities of both events.
but clearly decision point is close.