EUR USD Reversal Could Trigger 2 -3 Week Break

The EUR USD also formed a weekly closing price reversal top. Weaknessstarted on Thursday after the European Central Bank decided to leaverates unchanged. Today’s bullish economic news from the U.S. could besignaling the start of rate hikes by the Fed which would tighten up theinterest rate differential between the Dollar and the Euro.

Weekly Analysis

EUR USD

The EUR USD also formed a weekly closing price reversal top. Weakness started on Thursday after the European Central Bank decided to leave rates unchanged. Today’s bullish economic news from the U.S. could be signaling the start of rate hikes by the Fed which would tighten up the interest rate differential between the Dollar and the Euro.

Technically, the weekly closing price reversal top could be signaling the start of a 2-3 week break but needs to be confirmed by follow-through selling next week.

The main range on the weekly chart is 1.6039 to 1.2329.  The retracement zone is 1.4184 to 1.4622.  The reversal top was formed inside of this zone.

This week’s higher high, close below the opening, close below 50% of the week’s range and lower close satisfied the requirments for a weekly closing reversal top.  All this market needs is a break through this week’s lows to trigger the start of the correction.

Weekly Chart

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James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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