This week as whole, is very positive for the buyers on the EURUSD, especially that the last two weeks, created very dangerous bearish candles on the weekly chart. Despite that, the price is aiming higher and , most recently, broke an important mid-term resistance.
This week’s optimism, started on Monday, when the price bounced from the long-term horizontal support on the 1.153. that bounce was a buy signal because it denied the head and shoulders formation, which was looming over the market. Yesterday, buyers managed to break the mid-term down trendline, which was connecting the top of the head and the right shoulder. In theory, that gives us a buy signal. The only obstacle for the full purchase mode is the horizontal resistance on the 1.165 (blue). Once this one will be broken, sellers will have no hope left.
Before opening a trade on the EURUSD, remember that today we do have crucial data for both EUR ( rate decision and press conference) and USD ( CPI). For sure that will increase the volatility here and will create great trading opportunities.