EURUSD: Weekly Review (05/12)
Tatiana Norkina, analyst at FBS
Daily. Last week we observed the update of the lows once again. The rate of exchange of the currency pair has dropped to 1.2280, which certainly opens the way to the 22nd figure for the bears. It won’t be hard for them to continue the downward trend as far as the Ichimoku indicator is entirely on their side. Thus, due to the existing dead cross and bearish cloud all the indicator’s lines are pointed downwards. However, upon confirmation of a reversal candlestick pattern "bullish engulfing", which was formed on the daily timeframe, we can expect recovery to 1.2450 area and the continuation of the main trend only afterwards.
Chart. Daily EUR / USD
H4. The situation at the four-hour timeframe is also bearish but appearance of the Chinkou Span line in the oversold zone will make a pair consolidate at current levels.
Meanwhile, dead cross formed by Tenkan and Kijun lines and the descending character of the cloud do not lose their relevance.