EURUSD Testing Upper Range Level For The Third Time

EURUSD Yesterday’s chart analysis

EURUSD has reached a resistance level at $1.19000 which is the upper level of the range area. The range area spreads over 200 pips wide area between $1.17000 and $1.19000.

The $1.19000 level acted as a good resistance level on the last two attempts. The first time was at the end of July and the second time was on August 05.

The second time when the price reached this resistance it was a hard time to close the H4 candle near $1.19000 which suggested that the sellers will not allow easy break above.

Now the price has formed a strong base before attacking the upper side of the range area and the H4 candle has closed above candles that were formed on the second attempt to break the resistance.

The daily time frame shows several bullish candles in a row. Each candle is not a large candle that would show bullish strength, but each candle has closed above the previous day close.

(Click on image to enlarge)

EURUSD Chart Forecast

H4 time frame shows us that the price will make a test on the $1.19000. The area around $1.19000 must be broken above to see the price making new highs.

If we see bearish price action around this support level the price could reverse back to the level around $1.18300. That level was holding the price on the last pullback when the price rejected from the $1.19000 resistance.

If we see the price closing above $1.19000 on a daily time frame we should wait for the pullback to $1.19000 and wait for the confirmation that the bulls have taken over.

Confirmation can be engulfing bar or bullish Pinbar on the $1.19000 which will point the price to the next resistance level at $1.20850.

Yesterday’s close on the daily time frame did not close above the previous daily candle close on the last two attempts(End of July and August 05) so we should wait until that happens. When the price close on a daily basis above those daily closes we should see the price making new highs towards $1.20850.

Bearish scenario is less likely, but if we see a strong bearish signal around $1.19000 the first support is around $1.18000.

The second support level that will hold the price from moving down is lower level of the range area at $1.17000.