The EURUSD price made some changes on the market last week, which is visible on the chart. The price has formed all bullish candles starting from Monday and only Friday was a bearish candle.
On Monday the price made a bullish candle with a large wick on the upper side next to $1.09860 resistance. The price found resistance and it was pushed back down.
On Tuesday the price made a similar move by moving to $1.09860 resistance, but this time the price break above higher than on Monday. And the price was pushed back down again creating a larger wick on the upper side. A candle formation on the chart shows a bearish Pin bar on the resistance level.
This was a sign of the bearish price action signal, but the price did not follow. The price broke above on Wednesday with a strong bullish candle and closed the day above $1.09860 resistance level.
This was the first sign bulls are stronger than bears.
On Thursday we can see the price making new highs and closing the day above $1.10755 resistance level which is a strong signal.
Friday was a day where the market experienced a sell off on the strong resistance level. The price reached $1.09860 support level and made a wick which shows the bulls strength on that level.
Looking at the previous week’s analysis, the bullish scenario has been realized where the price closed the day above $1.10755 which is an indication of a bullish market sentiment.
Because the price has broken above a strong confluence of resistance and managed to close the day above, we can prepare for a bullish market scenario. At least in the short term.
The current support level $1.09860 is the place where the price will find support because it was the level where sellers were pushing the price down on Monday and Tuesday. This time the bulls that were making a wick on the candles will support the price from falling down. And from this level we could see the price move higher.
If the price creates a bullish price action signal on the $1.09860 that will be a bullish signal for entering into the market.
The price will have a hard time breaking above $1.10755 because there are still sellers waiting to see which large wick on Thursday candle shows.
But there are also bulls pushing the price higher.
In this case I would wait for Monday to close. After that, the market will show the direction because traders will get in the trades and the price will show the direction.
The bulls' goal is to break above $1.11871 to secure a further move up because that is the level that was holding the price from falling.
From there the price will be in the range area where we will need to make a new analysis and see where the market will move.
On the down side we need the price below $1.08846 to return back into bearish mode. That is important support that must be broken.
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