EURUSD Forecast – $1.04700 Retrace Target

Our previous EURUSD forecast talked about price making a breakout from a range that was held inside for two weeks.

The price made that breakout on Wednesday after testing the $1.05825 resistance three times.

The same day, the price formed a bearish pin bar, after which the price made a breakout on the downside.

After the breakout we can see a 177 pips candle on Thursday that took the price to the first support level, which was $1.03920. The lowest price level the price reached was $1.03503.

Price stopped and made a retrace above $1.04000 on Friday, which we can attribute to Friday exit where traders cash out after a strong move and get out from trades before the weekend.

What we have now is a clean situation for the bears. The price has broken below range and the break was not confirmed by the price. We can expect price moving higher close to $1.05000 resistance level and from there look for bearish price action signals.

That level would be $1.04700 as a high for the price on the retrace.

There is room for more testing candles on the lower side, because the current support level is strong support and price is strongly pushed from the upper side. So, we could see the price staying here for a while until we see bulls or bears weaken in this battle before confirming future direction.

Next support is $1.02975 which the price could try to reach. But, final support where the price is heading is $1.01368 which is low of the downtrend channel.

Now is the time to wait for the retrace to higher levels and from there look for a sell signal. That is around $1.05000, where the price will find strong selling pressure and where the price will have a hard time breaking above.

Video length 00:07:57

Disclaimer: Any Advice or information is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.