EURUSD Forecast – $1.08300 Bulls Targeting Monthly Triangle
In my previous EURUSD forecast I talked about price reaching higher levels like $1.06400, which was a high on the last bullish attempt. The price reached that level in a day on Monday with 144 pips candle large.
It was a sharp move that took the price outside the downtrend channel and above two resistance levels: $1.05825 which was a confluence of resistance and $1.06736 also confluence of resistance.
After breaking above resistance levels the price returned down to $1.06736 and verified the level as a support. And from there continued to stay on higher levels.
The week ended on the upper level of daily candles with Friday's wick above all previous candles. Which means price has tested higher levels and it was not pushed down as a sign of bullish strength.
We can see the currency strength meter showing EUR much stronger than USD currency, which is confirming the bulls' strength.
EURUSD price is above $1.06736 support level and a little below the next resistance level $1.07825. $1.07825 level was a significant level in the previous price attempts to break below. And it was a good support that held the price for a week.
After breaking that level the price dropped 300 pips.
Now, the price has a resistance level that must be tested. And the price will likely test that resistance and price around $1.08300 which is close to the monthly trendline. That trend line was a trigger for a big sell off because the price has broken outside of the triangle.
$1.08300 level is around 100 pips from the current price which is a two days pip range for EURUSD.
If the price manages to close above $1.08446 resistance level that will be the sign the price has moved outside of the bearish trend and we can look for more bullish trading opportunities.
$1.07825 is the first step and it is a base for bullish attempts to attack higher levels. But, have in mind that $1.08446 is above the monthly trendline. And it can be that the price has returned back to test the breakout from the monthly triangle which will be the start of a new selloff.
If the sell off happens the price will need to move below $1.05825 to return the price in a downtrend.
Video length 00:11:10
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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