The pair has been declining for the past week and tested the pullback level of 76.4% – 1.0767 (red dotted line), but the weekly candle closed much higher – 1.0823. Now, for the upcoming week, the price from the level of 1.0823 (closing of the last weekly candle) may start to increase.
The price may move up this week, with the first target of 1.0887 – a pullback level of 38.2% (blue dashed line). When this level is broken up, it is possible to continue working upwards with the target of 1.0956 – a pullback level of 50.0% (blue dashed line).
Fig. 1 (weekly schedule).
– indicator analysis – up;
– Fibonacci levels – up;
– volumes – up;
– candlestick analysis – neutral;
– trend analysis – neutral;
– Bollinger lines – down;
– monthly chart – up.
The conclusion of a comprehensive analysis is an upward movement.
The overall result of calculating the candle of the EUR/USD currency pair according to the weekly chart: the price of the week is likely to have an upward trend with the absence of a lower shadow for the weekly white candlestick (Monday – up) and the presence of a second upper shadow (Friday – down).
The upper weekly target is 1.0936 – a pullback level of 50.0% (blue dashed line).
An unlikely lower scenario: working down with the target of 1.0727 – lower fractal (blue dashed line) from a pullback level of 23.6% – 1.0825 (blue dashed line) is unlikely.
The material has been provided by InstaForex Company – www.instaforex.com