10/01/2022 - EURUSD weekly analysis.
Well here we are crabbing it slightly to the upside.
Technically we look like we may be gearing up for a break down from a wedge pattern with 1.135-1.136 being strong res.
I can’t see us breaking this week but sells from the said res may be profitable and setup for a break out to the lower side.
On the fundamental front:
- FED looking to tighten tapering due to inflation.
- ECB being conservative on monetary policy even though rising inflation.
- Covid continues to slow down economic recovery.
If we were to think bullish we would have to see the 1.136 res broken and settled above for me to buy but with how nonplussed markets were on the low NFP data I can see a continuation to the downside for now.
How do you guys think this is playing out? Any reasons to be bullish?
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