Monthly reviews

EURUSD market technical outlook

Monthly chart:

Bearish swing looks exhausted. It’s hard for structure to develop downwards without full-value corrective swing. Besides we have to remember about the 1.2093 level, where bearish pattern O&U formed a potential sell offer volume. Thus the most likely scenario seems to be the start of the euro recovery in direction 1.2093, from where the major will be sold out again during a long-term period (watch the red arrow).

But also there is an option with continuation of quotes decline in direction 1.0530 (watch the black arrow), since market didn’t provide direct buy signal.


Conclusions:

Main scenario: Start of recovery in direction 1.2093.

Alternative scenario: Continuation of the euro decline in direction 1.0530.

Trading recommendations:

Looking for local confirming signals for one of scenarios.