By examining the weekly chart of EURUSD, we can see how the pair is currently struggling with the long-term falling trend line that connected the movements from all-time peak of 1.6035.
Momentum indicator reaction with the afore-mentioned
resistance line may form a negative divergence, forcing the pair to show strong
downside moves with a break below 1.2140-1.2130 initial support.
The rule of (history repeats itself) could be efficient despite recent hard fluctuation on EURUSD and the DXY (Dollar index) chart below may support our potential bearish outlook for EURO.
Classically speaking, the Dollar index moved bearishly opening of 2017, but it is presently nearing tough support that may push it higher over medium-term and long-term basis.
From a pure harmonic perspective, a bullish alternate harmonic bat pattern offers PRZ -potential reversal zones- that is accompanied with bullish divergence.
Accordingly, we see fair amount of possibility that Greenback will inch higher.