Trend analysis
This week, EUR/USD quotes may move down from 0.9861 (closing of the last weekly candle) in order to test the 50% retracement level at 0.9767 (dashed blue line). Then, it will go to the 38.2% retracement level at 1.0023 (yellow dotted line) and to the 50% retracement level at 1.0168 (yellow dotted line). Much will depend on the reaction of the market to European interest rates, which will be released on Thursday.
Fig. 1 (weekly chart)
Comprehensive analysis:
Indicator analysis - uptrend
Fibonacci levels - uptrend
Volumes - uptrend
Candlestick analysis - uptrend
Trend analysis - uptrend
Bollinger bands - uptrend
Monthly chart - uptrend
All this points to an upward movement in EUR/USD.
Conclusion: The pair will have a bullish trend, with a first lower shadow on the weekly white candle (Monday - down) and no second upper shadow (Friday - up).
So during the week, euro will fall from 0.9861 (closing of the last weekly candle) to the 50% retracement level at 0.9767 (dashed blue line), then go to the 38.2% retracement level at 1.0023 (yellow dotted line) and to the 50% retracement level at 1.0168 (yellow dotted line). Much will depend on the reaction of the market to European interest rates, which will be released on Thursday.
Alternatively, quotes could climb from 0.9861 (closing of the last weekly candle) to the 38.2% retracement level at 1.0023 (yellow dotted line), then bounce down to the 38.2% retracement level at 0.9821 (dashed blue line). The pair will continue to rise after testing this level.
