As we can see yesterday was a day with indecision in the market. Price has risen to the 1.08508 level and made a pullback to the 1.08275 support level as was predicted. On the 1.08275 support level a bullish Pinbar has formed and in the next H4 time frame price could not define in which direction should go.
An indecision candle has formed and was broken on the next H4 time frame with the strong bounce from the 1.08275 support level, and that bounce pushed price up deeper in the range area.
Price almost touched range area resistance level 1.08846 like previous Pinbar on 05.05.2020. but the price could not find strength to hold or to move further up. Sellers were too strong and they moved the price into the indecision area where the price currently is.
Week Ahead EURUSD Chart Forecast
While we have several H4 candles that have wicks on the support level at 1.08275 and the majority of the candles are showing us bullish pressure, we could see price moving more up in the range area in the next few Forex trading sessions.
We also need to have in mind Friday was a day when the prices do not leave correct signals so prices could start the week in completely different way than is it predicted. For now, the best decision would be to hold until Monday ends after the price makes some moves which will help to define the future trend.
The last two times when the price entered into range area it took around four days to get out of that range. If history repeats itself we could see the price next week trying to break out.
EURUSD Chart – Bullish Scenario
EURUSD price has made a pullback to the support level at 1.08275 and created a Pinbar which was not that strong but it indicated that the bulls have some strength and sellers have to get out from the trades.
We could see price trying to reach resistance level at 1.08846 from where the price could stall a little bit and make some highs on that level. After that if the price breaks out from the range the next level is 1.09371.
EURUSD Chart – Bearish Scenario
Bears were strong last week but in the last two days they have lost strength. Strength was lost because sellers got out from their trades to take profit.
Next week we could expect that price reaches resistance level at 1.08846-1.09028. From there a bearish price action signal could trigger a strong move back to the support level where we should wait for a break-out.
If the price breaks out further down the best thing to do is to wait a pullback to the 1.08275 level and from there wait for a bearish price action signal.
Monday is usually a day when the market is preparing to define a move for the next two or three days. So, on Monday it is better to see what happens and then enter if there is any trading signal on the chart.
The market is not easily predictable and we need to prepare ourselves for a bullish or bearish scenario. Risk management is crucial in Forex trading so play safe and set a stop loss.
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