The Correctiontion Of The Bullish EUR/USD Movement Continues

On the weekly time frame you can see that the corrective drop could possibly reach 1.1100 – 1.1050.

Оn the daily time frame the corrective movements that have formed so far make me think that the correction could develop as a flag or a downward pennant. Unfortunately, so far we cannot draw a proper trend line yet which would make the picture clearer and we will have to wait until that becomes possible.

On the smaller time frames we obviously have to wait for the London session on Monday in order to make a more precise analysis, but considering the chart I think that the new week will begin with a small corrective move to the downside to 1.1180 and then a rally to 1.1250.

I think that such movements will be just a part of the consolidation and in order to trade them we’d have to look out for various technical analysis figures and patterns. We could also use the various support and resistance levels, as well as our knowledge about the signals given by the Japanese candlestick formations.