Written by Waleed0987
In the name of Allah. This chart is the EUR\USD weekly chart, which shows the trend in yellow, as a line that is creating negative head and shoulders, and which was broken recently; the result was the market went down for 600 pips.
(Click on graph to enlarge)
Now, here it is again to retest it; however, what we see is a break up from this test, where is the market is very volatile on this trend. The first time, the market reached near the test point and went back, then it broke it, but the market closed under the line where there is now high volatility. These behaviors show that the market is willing to break the trend to reach the 50% correction from the original downward trend; this was all about the yellow line.
Now regarding the red line, it shows the recent upward trend which was broken, and next week we might see the 38% correction, which will be a historical moment for the EUR\USD. And then, the market might go down to maximum 1.3295 and the movement will be quick. If the EUR\USD is very volatile then it might go lower than 1.3295 to reach the 1.3070 level, however, I think that the market will continue to 1.4040 and only God knows.
This was only my personal opinion, and not intended as a signal to buy or sell.
This news item was republished from eToro Forex news website
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