Based on the EUR/USD weekly chart:
- Current Trend:
The EUR/USD appears to be in a long-term bearish trend. There is a consistent series of lower highs and lower lows, suggesting bearish momentum is still dominant. - Key Resistance Zones:
The marked bearish order blocks on the chart indicate significant resistance levels:
- Around the 1.2000-1.2200 region.
- A shorter-term resistance around 1.1200.
- Support Zones:
- The 1.0000 psychological level is a key support area. It has historically acted as a floor for price action, and it is a round number that often attracts market attention.
- The current price near 1.0490 aligns with previous demand zones, but the weakness in momentum suggests it could break lower.
- Break of Structure (BOS):
BOS points on the chart indicate significant bearish continuations at various stages. This shows a repeated failure to break higher levels and a continuation of the downward trend. - Outlook for the Week:
- Bearish Bias: Unless the pair strongly reclaims resistance levels like 1.0600 or higher, the bearish structure remains intact.
- A potential retest of 1.0400-1.0450 support is likely. If this breaks, the price may head toward the parity level (1.0000).
- Upside potential seems limited this week unless a reversal pattern or bullish momentum appears.
Suggested Trading Approach:
- For Bears: Look for short entries near resistance levels (e.g., 1.0600 or any rejection candles in a retracement).
- For Bulls: Monitor for signs of a double bottom or divergence near the 1.0400-1.0450 zone.