The EURUSD price is tested key resistance, will the weekly downtrend continue from here?
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The EURUSD could continue its downward trend this week or change the trend. On Friday, the US PPI data will be announced which could shift the trend of EURUSD. If the PPI numbers come in higher than expected then the downward trend could continue with the price forming a lower high. If however, the opposite happens we could expect the price to rally and a new trend could form. The USD Index tells us that the market is waiting for an outside influence as the price continues to trade above the 105.00 level.
Currently, the weekly chart shows the price is trading at a trendline and horizontal resistance around 1.0500. Going down to the 4hr chart we can see that the price is continuing to form higher highs and higher lows which goes against the idea of looking for the downward trend to form at the moment. However, if the price were to trade through the 4hr lows and form a new low we could assume the trend could be changing and short opportunities could begin to form.
Did you see our AUDUSD Analysis? You can see it here.
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