NOTE: After two weeks of moving internationally, I am back so expect a full set of articles this week.
Ending last week consolidating in a flag pattern just above 1.2700, the Euro broke lower towards 1.2659, but failed to hold the downside, potentially forming a false break and short term bottom. During this process, it formed an engulfing bar + pin bar combo
, two back to back bullish reversal signals.
Although still in a short term downtrend, the pair is attempting to bottom. Should it clear the 4hr 20ema and the 1.2733 area, it may start to show some bullish legs, challenging 1.2763 next. Above here, 1.2800 and 1.2854 are up next so bears can watch for potential price action triggers here, while bulls will want 1.2659 to hold the downside defenses.
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Upcoming Economic Announcements:
|EUR French Consumer Price Index (YoY)
|GBP Jobless Claims Change
|EUR Euro-Zone Industrial Production w.d.a. (YoY)
|GBP Bank of England Inflation Report
|USD Advance Retail Sales
|USD Fed Releases Minutes from Oct 23-24 FOMC Meeting