Forex Signals - Euro / US $ Outlook for next week

Euro / US $ Outlook for next week (July 4 - 8, 2011 )

Pattern is still bearish, however latest market price action makes me fear about near-term bearish views on the market. And here is why. As we’ve estimated in month-to-month a part of research, forming of inside month and standing at nearest Fib support after overbought just isn't very typical.

Now look at weekly chart - market has hit 1.40 support once. I do not doubt the energy of assist - that is weekly confluence and previous highs, however throughout second touch market was not capable of present decrease lows, although we've cease grabber. Second, market simply hit 0.618 goal of downward AB-CD and now we see sturdy pullback from that area. Third, although market holds bearish, value action reminds triangle consolidation and doesn't support that.

This type of price action could be very typical for final Butterfly “Sell” with 1.52 target - the identical goal as AB-CD and 3-Drive on month-to-month and weekly oversold. And this scenario begins to appear an increasing number of probable.
Still, we are able to’t just shake off and concept of down move as a result of pretty harmony here is also exists. If we check out the chart, then we will see that just under this level stands weekly Confluence assist 1.3655-1.3760, that can be an Agreement with 1.3733 AB=CD target. Monthly chart does not exclude, that market might attain it.
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