The EURUSD has fired off a bullish engulfing bar on the weekly chart. This bullish engulfing bar (BUEB) shows that the bulls had complete control of the market last week. Price had sold off lower and tested the major lower support level, before the bulls jumped in hard and fast sending price rocketing higher to engulfing the previous weeks candle.
Whilst the bulls were in control for the majority of the week, the bullish engulfing bar closed just lower off the lows showing that price had found resistance. The chart below shows a very clear resistance area that is in-line with the high of the engulfing bar high. If this bullish engulfing bar is to work out and move higher, price is going to have to move higher and break through this solid resistance area. This resistance area is a proven level that has held price in the past and would not surprise to see it hold price again.
If price can burst through and move higher it could then act as a new support level and hold for the next move higher. The near term target on the radar would then be 1.3850.
EURUSD WEEKLY CHART | 14 JULY 2013
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