There is recently an upwards bounce in the market – in the context of a downtrend. The upwards bounce is yet to nullify the downtrend, but it would do so as soon as the price goes above the supply zone at 132.50, which would require a strong buying pressure. Right now, the EMA 11 is almost crossing the EMA 56 to the upside, and the RSI period 14 is above the level 50. Once the EMA 11 is above the EMA 56, the bias on the market would turn bullish.
There is still a Bearish Confirmation Pattern in the
market, but the recent rally has become a threat to the extant bearish outlook.
Nonetheless, a strong rally is in the offing, as the outlook on EUR pairs remains bullish for this week.