EURUSD W1 – Bulls are stretching their muscles

The EURUSD currency pair on the Weekly (W1)  time frame was in an exceptionally long downtrend until a last lower bottom formed on 25 September at 0.95347.

After the last bottom, the bulls woke up after their  long slumber and started stretching their muscles.

The price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator following suit and breaking through the 100 baseline into bullish terrain.

A critical resistance level formed on 13 November at 1.04811 and there the bears tried their best to take back control of the market.

The bulls were having none of that however and a higher bottom formed on 20 November at 1.02220.

During the week of 27 November the price broke through the resistance level at 1.04811 and three possible price targets were calculated from there.

Attaching the Fibonacci tool to the higher top 1.04811 and dragging it to the bottom of a support level near the 34 Simple Moving Average at 1.02220, the following targets was determined.

• The first target was estimated at 1.06412 (161.8%).
   
• The second price target is possible at 1.09003 (261.8%)
   
• The third and final target might be anticipated at 1.13195 (423.6%).

If the support level at 1.02220 is broken, the above scenario is no longer feasible and should be re-assessed.

As long as the bulls continue to drive the price higher with demand overcoming supply, the outlook for EURUSD on the weekly time frame will remain bullish.