EURUSD Forecast – $1.07388 Retrace Target
Last week's analysis talked about price moving down around 100 pips, and 300 pips in the long term. The price has reached both targets in four days.
The price started Monday with a bearish move down, reaching the demand zone around $1.06736. From there price bounced back up, but that bounce was a small one.
From there the price did not stop until it reached $1.05000 level, where sellers got out of their trades. The price retraced back to the first resistance level at $1.05825.
The whole week was in a selling mode which shows the weakness of the Euro and the strength of the U.S. dollar.
Next week we can expect some retrace for EURUSD after strong selling pressure last week. The price is now on the strong support level. The $1.05087 support level has strong impact on the daily, weekly and monthly level.
If we take a look at the monthly time frame, we can see that this price has stopped the price from falling down. This time the price has experienced the same scenario.
If we take a look at what has happened when the price reached this support level we can see the price retraced back up for 200 pips.
The retrace reached the $1.07825 resistance level which we should take into consideration this time.
The $1.07825 resistance level is right on the confluence of resistance where we have downtrend channel resistance line and horizontal resistance level.
Most likely the price will reach $1.06736 resistance or $1.07388 which should be the next target. $1.07388 was this week's highest target reached when the price made a retrace from $1.06736.
But, in order to see the price moving upwards to these levels we need daily candle close above $1.05825 resistance level. Until that happens we should avoid opening buy orders because the price has more free space to move down.
On the down side we have $1.03920 strong support, which was the support in the past price reached after breaking $1.05087 support.
The best thing to do is to wait and look for sell entries around $1.06736 as a potential reversal level where sellers will push the price down.
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 ...
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