[EURUSD] Weekly projection for the week of December 15 [CRT]

After the sharp collapse of the US dollar and the consequent strength shown by European assets —mainly the euro and the British pound— the chart begins to offer us a reading that points to possible bullish continuations.

If we look at the structure in monthly timeframe, it is clear that the movement is not yet complete in either EURUSD or GBPUSD. Therefore, we move down to the weekly chart, where for the next week two well-defined targets are identified:

1. The tip of the wick left after the close, as an ultra-conservative target.
2. The full target of the monthly range.

At this point, I consider it necessary to return again to the monthly chart. We must not forget that we have been trading a monthly range restarted against the main trend, so it is totally logical to speculate on a strong reversal once that target is completed.

Once this counter-trend range is finished, the context would be ideal for the price to start aligning with sells from an optimal zone.

Also, after completing this last monthly target, we have ahead the PDM zone of the main monthly range, an area that the price could test before giving way to shorts.

But focusing on what really concerns us for this start of the week, we now go down to daily timeframe:

On the daily chart we observe an inside candle, which implies that for Monday there is no clear bias until the price clears a relevant high or low.

However, if we analyze the euro futures, we find a very significant gap generated between Thursday and Friday:

This gap provides us with a second solid justification to try to look for sells at the beginning of the week, especially when the price takes out some high on 12H or even 4H.

Therefore, although the general bias for the week is bullish, the key question is: will the price reveal itself already on Monday? Personally, I think not.

My main speculation for Monday and Tuesday is that the market tries to:

1. Fill the gap of the futures.
2. Build the wick of the weekly candle.

Subsequently, complete the marked targets and remain sideways in that zone so that, already in January —this is quite a forecast, but it fits well by context and calendar— a turtle soup can be generated on the December candle and start the year with sells towards the still pending bearish targets.

Remember to be very careful with risk management on shorts at the beginning of the week and trade with lower exposure until clear bullish ranges begin to form.

I wish you all an excellent start to the week and, as always, many profits!