Hello. Previous week euro stopped falling against two other majors and showed some strenght. In weekly EurUsd chart we see, that the pair found its support at 1.1876. I think, this support is strong, because it is related with a forming "big flag" patterns lower support line (I mentioned it on my previous week report). Beside this, piercing pattern has formed. So if the next week will end with white candle, it may be a clue of returning bull market.
As EurUsd, EurJpy pair also stopped falling. Price touched precisely a 108.06 level, range between cup support line and profit target is equal to a 2/3 of a cup deepness as theory states. So it may be no room for eurjpy to move south. Formed bullish harami pattern tells that euro strengthen against yen and bullish next week can be a sign, that euro will strengthen more.
In daily EurUsd chart we see a wedge pattern formed and a double bottom pattern formed. Both bottoms diverge with MACD indicator. This says, that bear market maybe over. So for next week I expect EurUsd to reach 1.26. Price can pierce this level and continue towards 1.33. But more likely bulls will stop at 1.26, retrace to 1.215 level and form a reversed Head and Shoulders pattern. This may happen in one - three weeks.
For EurJpy rules are same as for EurUsd: Price may reach 114.00 level, pierce it and move towards 120.00. Or fail a little bit at 114.00, find its support at 109.00, form reversed Head and Shoulders - bulls return. But failure of all this can cause a bears to continue its travel to south.
So for next few weeks I expect both pairs to move in range market and maybe form some reversal patterns :). To more clearly determine market direction I will follow general economical news.
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