Strong bearish candles last week were a sign of bears' strength and that has been confirmed on Monday. The price has fallen down to $1.21500 which was a sign that the price will move down.
The first step the price took was to retrace back to the uptrend support line which now acts as a resistance. This retrace was throughout the whole Tuesday.
On Wednesday and Thursday the price felt down below $1.21600 level, but the retrace was strong. The buyers have pushed the price above to keep the price above $1.21600. We can see a bullish Pinbar, but the Pinbar was not in the right place.
If I would consider a bullish Pinbar it should be next to $1.20800 level, but in this case it was not backed up with other support levels.
Friday was a day when the price continued moving down and eventually the price reached $1.20800 level.
$1.20800 is a support level that held the price from falling down in the strong bullish move in December 2020. We will see the price bouncing up from this level.
I am expecting the price to stall because there are buyers waiting and sellers will get out to cash the profits.
For now the EURUSD forecast does not look bullish. I will wait for the price breakout down below $1.20800 to change my bias to bearish. In the next week there will be more signals where the price could move in the future.
If the price finds support at $1.20800 and makes its way up above $1.21793 then I will wait for more confirmation before looking for any buying opportunities.
The market for now does not look too clear for me so I will wait for the best opportunity on Tuesday after the market makes a move on Monday.
Comments
Log in or sign up to join the conversation.