Previous Week Summary
This week has given us a shift in the EURUSD price direction from bearish sentiment to bullish. Shift happened by breaking a range that started to form two weeks ago.
We had a break down the week before. This week price returned back in the range area and at the end of this week price has broken above.
Very strong bullish H4 candle has been the result of the break with almost 140 pips size. That break was a signal that we could see price moving up in the next trading sessions.
As discussed yesterday where I said the price could move up to the resistance level the price have done just that. Price have reached resistance level at 1.09860 and formed a bearish Pinbar.
The H4 trendline has been drawn to help us plan where the price could go while moving up. For now the price is following the trend line and on the intersection between trend line and resistance level we have a Pinbar.
The place where more levels intersect I call that area as a confluence level. It means more levels have their influence in possible price movement.
Forecast for the Week Ahead
The week ahead could show us will the price reach the resistance level at 1.10373. That is the level of previous H4 highs where we could see a nice reversal because of many sellers at that level.
While we have H4 Pinbar currently formed at the confluence level we could see price reversing back to the first support level at 1.09371 or even more down to the stronger support level at 1.09028.
From the support level we should watch for the price action signal that will signal us that the price could move up. Until then the best decision is to wait for the right trading 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 our self for bullish or bearish scenario. Risk management is crucial in trading so play safe and set stop loss.
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