EURUSD Week of Nov 1 – 5 Outlook
Recap of past week
First move to 1.4040 area resulted in a 1-2-3 sell visible on hourly. The short was a easy ride until it attempted to post a potential IHS formation and paused at 1.3780. That alone spooked many shorts.
Next week outlook
As the lower 1.37 area was rejected, the other end will be tested quickly. 1.4000 is coming into play again. A sell setup from there (yellow zone) implies a much bigger selloff is coming. If the market zoom thru there, it will be a wait and see at the current month high (red zone).
The chart above clearly show that Oct is in upside range expansion from Sep range. The target area of 1.420, however, was not tagged. As the market spent the whole month going sideway, the odds favour upside resolution in the monthly timeframe, meaning that Oct high should be taken out soon.