The EURUSD corrected higher a bit last Thursday and early morning of Last Friday, tested 1.3135 levels, but it failed to hold and declined strongly below 1.3000 levels, reached 1.2954 levels.

Now, let’s take a look to the 4 hour chart, we have 2 strong signs of possible bottoming, so be careful with shorts this week, both of MACD and RSI are diverging the price positively, so we need to keep an eye on the pair this week, If the pair declines below 1.2954 towards 1.2900/1.2800 levels but RSI and MACD failed to make a significant move to the downside or below their higher lows , If seen, bottoming is suggested and  we might see strong rebound to the upside 200 pips or more, to suggest continuation to the downside, we still need further confirmation from MACD & RSI .

On the upside, a clear break above the falling line of the downward channel, especially If the pair could hold its gains above the falling resistance, and above 1.3135 level, If seen, strong bullish move might be seen towards 1.3318 levels, above 1.3318 will pave the way to 1.3430/520 levels.

However, be careful of short positions especially at lower levels, it’s highly recommended to watch the pair anticipating rebound to the upside, or watching RSI and MACD looking for further confirmation to the downside. Anyway; most likely sideways move will be seen before the next move.

Best Regards

Haitham