EUR/USD Technical Analysis
The weekly price chart shows the US Dollar Index printing a bullish outside candlestick, which typically indicates a trend reversal. For the third week in a row, the low of the week strongly rejected the support level shown at 101.07, which is a negative sign for bears.
Despite these encouraging signs, the Dollar remains in a long-term bearish trend, with prices remaining well below levels reached three and six months ago.
I don't like trading against long-term trends, but there are signs that the bearish trend is about to pause or make a deeper bullish retracement, so traders should be cautious and keep an eye out for this. Trades against the US Dollar should be entered only if we see bullish price action in the daily time frame.
The EUR/USD currency pair printed a bearish outside candlestick after reaching a new long-term high last week, which is a bearish sign.
Despite the bearish price action, the price has yet to fall by 3 days ATR, indicating that the bullish trend is statistically valid. It should also be noted that this currency pair frequently experiences significant pullbacks within trends.
The Euro's fundamentals remain positive, with the ECB currently positioned as one of the most hawkish central banks.
As a result of these factors, I believe the price will rise this week, in line with its long-term trend. Long-term trends in this currency pair are statistically significant. Bulls, on the other hand, should exercise caution and wait for more bullish price action in the daily time frame before entering any new long trades.