Weekly bias remains bearish. List of indicators applied on the 4 hours time-frame used for analysis includes:
Moving Averages 21 and 55 = Sell
Parabolic S.A.R = Sell
R.S.I = Sell
MACD = Sell
SSRC(customized stochastic) = Sell
Weekly Central Pivot Point Bias = Bearish
Candlestick formed from previous week = Bearish
Candlestick formed from previous month = Bearish Hammer
Last week’s fall shows that consolidation from 1.1096 has possibly completed. Initial bias remains cautiously on the downside this week for 1.1096 retest. A break and close below 1.1096 support will extend recent down trend and target next fibonacci level at 1.0283.
Above 1.1387 will dampen this bearish case and bring another recovery. But in that case, we’d expect strong resistance from 1.1678 to limit upside and bring down trend resumption eventually.
In the week ahead, Friday’s U.S. employment report will be closely watched, while Thursday’s European Central Bank monetary policy meeting will also be in focus.