In the previous analysis I pointed out that the price could reach the $1.16178 level and then make a pullback to the $1.16700 – $1.17000 area.
The price did just that and reached uptrend channel support level, which is a confluence of horizontal resistance and uptrend support line. From there the price returned back to $1.16178, but since then the price changed from the bearish into the bullish sentiment.
The change was because of U.S. elections and uncertainty that was present in the U.S. market.
The price has ended the week near the strong resistance level $1.19000. Strong positive news about the U.S. market did not have too much effect on the Forex market. The price reacted, but the reaction was not so significant and the price remained near $1.19000 level.
If we take a look at the weekly time frame we can see large bullish engulfing candle indicating the price will move further up. We need to count a strong resistance level $1.19000 which does not allow the price to move easily up.
The price has stopped in the range area from $1.17000 – $1.19000 for a long time. It has been stuck for 3 months, since July 29. Will the price manage to break above $1.19000 we will see next week.
Price is backed up with a strong weekly bullish engulfing bar and now is in the uptrend channel.
When the price reaches $1.19000 – $1.19300 level we could see the price making a pullback back to $1.18200 before moving further up. The $1.18200 is an uptrend channel support area which will stop the price from falling down to $1.17000.
Since the price managed to move above $1.17000 level I will look for bullish opportunities. First one is a pullback to $1.18200 area which will support the price for the future move UP.
If the price manages to break above $1.19000 the next resistance will be on the psychological level $1.20000.
Bearish scenario is less likely until the price closes below $1.17000.
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