Yesterday we had a strong move down when the price rejected from the daily trend line after stalling on the support level at 1.09028.
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Bears were strong enough to push the price back in the range where the price touched support level at 1.08275. From that level price reversed back to previous day's H4 candle high at 1.08846.
But as the bears are to strong they have pushed price immediately back down close to support level.
Current Status
Currently, the price is making small H4 candles in the range which represents that there is no buyers and sellers that would drive the price in any direction. That is the result of previous strong movements and where Forex market participants have entered into the trade or they have move out from the trade so the market does not have volatility.
We need to wait until market participants return back into the market and start making more liquidity so the price moves from the range area.
Today's Forecast
We need to see will the price make its way out from the well known range from previous day's. The scenario is like before – we need to wait until the price make a signal which will tells us in which direction the price will move.
As it looks like bears were very strong in last two day's which could indicate price breaking down from the range. For that we need to wait for a confirmation like bearish price action signal next to resistance level 1.08508 or 1.08846.
If the price do not manage reaching those two resistance levels we could see breaking down through 1.08275 and pulling back before continuing move down.
To make bullish move and break out from the range further up, the price will need a lot of buying power as we have seen very strong bear candles that pushed price down. First step is to break out from the range before moving to resistance level at 1.09371.
The market is not easily predictable and we need to prepare our self for bullish or bearish scenario. Risk management is crucial in Forex trading so play safe and set stop loss.
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