EUR/USD W pattern confluence
The EUR/USD is currently in uptrend that had its fundamental spark from mr.Draghi stating that he would not discuss QE at this point. ECB failed to deliver any cues about new stimulus.
After some profit taking on Friday we can see that EURUSD has made a W shaped pattern on 4h time frame (blue rectangle) and is supported by POC (78.6, EMA89, trend line, inner trend line, W pattern, WPP). The zone is wider due to strong momentum marubozu candle 1.1180-1.1210. If the EURUSD retraces in the zone we should expect a bounce. If it doesn’t retrace then 1.1282 could be a direct re-test before 1.1326. Only if we see a break of 1.1330 with a 4h candle above it 1.1420 will be the target. For the bullish scenario to remain valid, 1.1125 should hold.
Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets