Having analyzed EURUSD on the monthly chart I have learned to expect a reversal in the long term trend to occur next month (March). One thing I forgot to mention in my monthly analysis is that price moves from support to resistance and then back to support again until a breakout occurs. Once a breakout occurs it is an indication that the trend is going to continue in the direction of the breakout. Next I analyze EURUSD on the weekly time frame.
On the weekly time frame I have added a downward sloping channel acting as support and resistance. Next I notice price has touched the downward sloping support line of the channel and has started to bounce off it; notice the lower shadow. In addition, I notice last week made a tall bearish candle. I also know that usually, but not always, price retraces as much as 2/3rds of a tall candle. I have added a horizontal red line to indicate this area in which price could retrace too. I also notice that this price level is the same as the lows of three previous candles further indicating this would be a strong level of resistance. I also notice price is near the blue monthly upward sloping support line.
Here is what I am expecting from this analysis. I expect price to retrace a portion of last weeks candle during this next week. I then expect a final push down to the blue support lines, followed by a reversal in the weekly trend and a rally back up to the red resistance line or possibly the downward sloping channel resistance line.
From this analysis I expect price to reverse its trend over the next two weeks.
On the weekly time frame I have added a downward sloping channel acting as support and resistance. Next I notice price has touched the downward sloping support line of the channel and has started to bounce off it; notice the lower shadow. In addition, I notice last week made a tall bearish candle. I also know that usually, but not always, price retraces as much as 2/3rds of a tall candle. I have added a horizontal red line to indicate this area in which price could retrace too. I also notice that this price level is the same as the lows of three previous candles further indicating this would be a strong level of resistance. I also notice price is near the blue monthly upward sloping support line.
Here is what I am expecting from this analysis. I expect price to retrace a portion of last weeks candle during this next week. I then expect a final push down to the blue support lines, followed by a reversal in the weekly trend and a rally back up to the red resistance line or possibly the downward sloping channel resistance line.
From this analysis I expect price to reverse its trend over the next two weeks.