The euro/dollar pair declined last week and tested the level of 1.1786 – the pullback level of 85.4%(yellow dotted line). After that, it sharply rose, tested the level of 1.1895 – the pullback level of 23.6% (blue dotted line), and closed the weekly candle at 1.1876. This week, the price will most likely continue to decline.
Trend analysis
The price from the level of 1.1876 (closing of the last weekly candlestick) may further decline this week, with the target of 1.1781 - the lower fractal (blue dotted line). After testing this level, it may rise to the target of 1.1895 – the pullback level of 23.6% (blue dotted line). From this level, the upward movement will continue to the target of 1.2002 – the resistance line (blue bold line).
Figure 1 (weekly chart)
Comprehensive analysis:
- Indicator analysis - down
- Fibonacci levels - down
- Volumes - down
- Candlestick analysis - down
- - trend analysis - down
- Bollinger lines - down
- Monthly chart - down
A downward movement can be concluded based on a comprehensive analysis.
The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in a downward trend without an upper shadow (Monday - down) and with a lower shadow (Friday - up) in the weekly black candlestick.
The first downward target is set at 1.1781 – the lower fractal (blue dotted line). After this level is tested, the upward movement will extend to the target of 1.1895 – the pullback level of 23.6% (blue dotted line). From this level, the price may further rise to the target of 1.2002 – the resistance line (blue bold line).
Alternatively, the price from the level of 1.1876 (closing of the last weekly candlestick) may continue to decline in order to test the lower fractal of 1.1781 (blue dotted line). After reaching this level, it can further move down to the target of 1.1703 – the lower fractal (yellow dotted line).
