Forex FOREX PRO WEEKLY, December 05 - 09, 2022

Morning everybody,

As we've said yesterday, EUR shows some bullish signs that have made us to accept the postponing of downside reversal. It is somewhere near but has not started yet. The major reason why we think that B&B should start sooner rather than later is too strong double K-resistance cluster on weekly chart, and weekly overbought. Next level where theoretically B&B could start is major 5/8 resistance around 1.1275, but seems too far, especially in condition of overbought.
Besides, it seems that some big political and financial events also should happen. Meantime, on daily chart it seems that price stands aimed on XOP target of 1.0630 area. Bullish dynamic pressure suggests that previous top should be taken out.

On 4H chart butterfly "Sell" stands in progress and its extension perfectly agrees with daily 1.0633 target. So, this butterfly also has chances to become the pattern that put the starting point fo reversal, we'll see.

On 1H chart everything goes with the plan as well. Our H&S is almost hit the OP target. I'm not sure that we get XOP @1.0665 area and suggest that it is more probable just OP and washing of the top. Stops that are placed there, once they will be triggered should add some fuel and this help price to hit daily XOP around 1.0633. I'm gravitating mostly to this scenario...

That's being said - for the bears is "Stand by" mode, while bulls should start thinking about result booking totally/partially, or at least, stop replacement.