The price started the week with weak bearish candles where the candles closed close to support at $1.14000. That is the support level mentioned in last week's analysis when it was said the price will probably make a retrace.
The retrace happened after a strong bullish move a week before so the price found a large supply zone that returned the price back to first support level.
That support level is a confluence level of support where we have a downtrend channel line that supported the price from falling down.
On Thursday the price had a large market movement where we have an indecision candle, but the candle with large wicks breaking above resistance level at $1.14748 and below $1.14000.
It was a market testing candle where bears have taken over and pushed the price below $1.14000.
The price is pushed below $1.14000 which shows us bear strength that was triggered on Thursday when the price broke above $1.14748.
The price is now stopped on the demand zone close to $1.13000 support level. It is also an upper side of the previous range where the price was locked for a long time.
We can expect the price to reach the support level at $1.13000 and from there we need to see what happens. There is a high chance we will see the price bouncing back up.
That is the support level where the demand zone is and where bulls will push the price higher. As a first step it is good to wait to see how the price will behave at this support level.
If the price created bullish candles or price action candles suggesting a move up, like bullish Pin bar or Engulfing bar, then we can say the bulls are trying to make a move upwards.
But if the price comes to $1.13000 with bearish candles without bull’s strength then we can expect the price to reach $1.11871 support level.
The price needs to close above $1.14000 to continue the bullish move or below $1.11871 to continue bearish move.
Currently the market is in an indecision area which is good to avoid to prevent false trading signals.
Video length 00:07:04
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