EURUSD weekly analysis and forecast
EURUSD seems to have broken out of the corrective structure with the last few 4H candles on Friday. If you have been following my forecasts, last week we did forecast a corrective move up to complete the (y) wave and also to complete the overall wave ii of the Micro degree.
Now the market clearly shows intention to go further down. How far and how fast, we dont know yet. But one thing about waves is that you change and adapt your interpretation according to how the market develops over time.
So far, EURUSD is playing according to my forecast.
For next week, you know I will be bearish on the Eurusd. However, it does not mean that EUR is weak. Yes, in this case, EUR is weak or expected to get weaker against USD. Its important to understand that when a currency pair moves, it could be for strength/weakness of either pair or pure speculation. Forecast of single market does not warrant for a prediction or expectation in another. Except when the forecast is for an index of a single entity e.g. the dollar index. In short – analyze each market on its own merits.
Approaching a short trade on lower timeframes
This is not a signal service. The intention of weekly forecasts is to approach the markets and to look for trading opportunities in a specific direction. If the market does something else or goes in the opposite direction, you don’t engage. But at least, you must be prepared to take trades if the markets presents opportunities in the expected direction.
So this is my expected setup to engage in any sort of short trades in the coming week.
Blue line means any type of corrective structure. Obviously, I will look for short trades only. Any corrective rally, potentially presents an opportunity to enter the market.
With internal divergence of the MACD its very likely that the market begins the corrective rally from the week open and could probably last a couple of sessions.