Video length 00:08:57
Our previous EURUSD forecast talked about $1.06736 that needs to hold if we want to see the price on higher levels. The price returned to $1.06736 and formed a bullish Pin bar on daily time frame.
The price moved higher and reached a $1.07825 supply zone which was too hard to break. We can see large wick on the daily candle on Thursday where the price could not close the day above previous day's candle highs.
From there the price returned down and formed a strong bearish engulfing candle that closed the day below previous weekly false breakout downwards.
The price continued moving down and on the next day broke $1.05825 support level without having any problem. The price stopped at $1.05087 support which is a confluence of support where we have an uptrend support line and horizontal support line.
EURUSD Chart Forecast
Next week we could see a price close to $1.05825 which will be a breakout confirmation. It is the first resistance and confluence of resistance with the uptrend support line that now is resistance and horizontal resistance line.
The possible level for the price to reach is $1.05600, which is high on the previous reversal attempts after sell off so we can expect the same reaction and target.
From there the $1.05087 support could hold price for a while, but if we take a look at the weekly time frame we can see a strong bearish candle that shows the price will move down.
So, the target is $1.03920 as the next price target, but before that we need to wait until the price breaks from the current support level. The current price level was a low side of the range in April so we can expect the price to stall for a while.
Looking for a sell entry around $1.05825 as resistance level is a nice spot, but wait for the price action signal that will signal the price will move down.
Comments
Log in or sign up to join the conversation.