The EUR/USD calendar is pretty packed this week. Today, we’ll receive the US’s producer price index (PPI) but the real deal is set for tomorrow. A rate decision, an ECB statement and conference, and the US’s retail sales – are all events that should significantly shake the main currency pair.
EUR/USD - Technical View
Currently, the EUR/USD is trading near a crucial long-term support, the lower line of the giant symmetric triangle pattern (red). We’re also above an important horizontal support, around 1.08 (yellow), which was already in action at the beginning of 2017 and in 2020. Buyers need to hold this support.
The breakout of the yellow area would mean a fantastic, long-term sell signal. We have a blue down trendline and, most recently, a flag pattern (black), which ended with a breakout to the downside, promoting a further, long-term slide.
When the weekly candle closes below the yellow area, a sell signal will be triggered here. Chances for that happening are significant, but it’s not a done deal yet.
Buyers can still perform a counter-attack, which could leave a long tail on a weekly candle. Should the price create any Doji here, it would be an interesting occasion to buy, but in general, a bearish scenario seems more probable.
