EURUSD Forecast - Tough Fight Following

By Frano Grgić of GetKnowTrading

Forex trader, Market Analyst • Jan 9, 2021 at 4:14 AM EST

The market has changed in the last two days and strong bearish candles tell me the price could move more down.

Monday was pretty unclear because a large bearish Pinbar formed after Friday’s sell off. On Tuesday the price started to climb up and closed the day below previous candles close which was not clear sign will the price manage to break higher.

Wednesday was the day when the price broke out from the small range. But the breakout was a false signal where the price on Thursday returned back down.

The return inside range was strong. Two large bearish candles have wiped two weeks’ bulls’ work.

The price stopped at the support level $1.21793. That level is the previous confluence of support which is now preventing the price from falling down.

The market has changed in the last two days and strong bearish candles tell me the price could move more down. I will take this fall with reserve because it was Friday when the market makes creative moves.

I will wait for Monday to finish to see where the price is heading.

For now as it looks the price needs to close below $1.21600 on a daily basis to see resistance level $1.20800 as a next support.

If the price does not close below $1.21600 it could stay inside the range between $1.21793 and $1.22845.

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