EUR/USD Daily Outlook – Bears Are Still In Control

Previous day's summary

On EUR/USD analysis from yesterday I have pointed that we are in a range where we need to wait until the price make a move.

This is the sentence I am talking about:

When the H4 candle close in any direction but below or above those area or create price action next to those levels we can plan for the next move.

First thing that happened is the Pinbar on H4 time frame right on the border of the range. The high of the Pinbar is at 1.08844 almost next to confluence level and next to previous Pinbar's high.

This Pinbar represents sellers strength and you can read this Pinbar as follows: The price have tried to move up outside of the range but there was large amount of sellers waiting on the range break up point and on the confluence level  which pushed the price back below.

Next candle is a strong bearish candle representing sellers strength which have closed below previous H4 candles close and it engulfed many previous H4 candles. Closing price below previous H4 candles close tells us that the price have breached the support that was holding it above.

Today's Forecast

We were waiting the price to close below 1.08285 on H4 time frame  which is the level of previous day's H4 candle close. The break below is done and now we have open road to the next support level at 1.07825.

(Click on image to enlarge)

The best scenario is that we wait until the price make pullback to 1.08275 or somewhere near that level and then make a bearish price action pattern on H4 or even on H1 time frame. It can be another Pinbar like we have seen several of them in previous day's. The best way of watching both time frame's is to setup charts in Metatrader4 to watch simultaneously H4 and H1 time frame so you do not miss trading signal.

If the price, for some reason, do not manage to make a move down to the next support level we could see price moving back in the range area. If that happens we should wait again for the confirmation in which direction price could go.

Something worth mentioning is weekly forecast line about EUR/USD daily pip range which have played just as predicted.

Based on the EUR/USD pip range analysis which tells us that Monday on average have around 70 pips pip range, Tuesday and Wednesday have over 80 pips we could see the price move to bearish or bullish position in 2-3 days.