Weekly:
(-) Ichimoku setup scaled back to neutral: price is below Tenkan and Kijun, we have a weak bearish T/K cross, Kumo cloud shades price ahead, Chikou Span down to past candles
(-) Weekly Heikin-Ashi candle is bearish
(+) haDelta+ and haOscillator suggest bearish momentum may slow down as price is reaching 1,1678 (100wma and spot Kumo top) - 1,1770 (forward Senkou B line (52 weeks avg) ) supports
(+) trendline is still intact
(0) EWO is
Daily:
(-) Bearish Ichimoku setup
(-) Bearish Heikin-Ashi price action
(+) EWO and haOscillator show some bullish divergence
(0) MACD histogram is also up to zero, which says a consolidation might be close
Short term not much risk/reward left for the bears. I also think that the previous all time high EURUSD long positioning of the market has become lighter in last 3 weeks.
Probably it's time for some consolidation around 1,1800, or I can also imagine a start of a pull back towards 1,21+ in comeing weeks. However the long term weekly strategic bullish setup is damaged. Should it move back to 1,21+, the price action there will be absolutely decisive for the rest of the year: a) bulls take the control back, or b) EURUSD prints a Head and Shoulders pattern, and then we'd see a bigger drop, with all the consequences of the much stronger USD.
For now it's time to lighten up short positions a bit, and swing traders can start watching the 4H time frame for a swing buy signal.
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