EURUSD Forecast – Indecision Downside Breakout
Our previous EURUSD forecast mentioned that the price needs to break out from the indecision, most likely to the upside.
The price broke out on Monday with a small bullish candle which continued for the next two days.
The price managed to reach the first small supply zone around $1.00570 and then stopped. The price could not close above this level which was an obstacle in the past for the price to move to the upside.
On Thursday the price declined and erased the previous three days' bullish pressure. The price stopped on the lower side of the previous indecision range area.
On Friday the price returned back up and again down ending inside the previous indecision area.
For the next week we need to wait for the price to make its way outside of the indecision area like this week.
The market overview now looks much more inclined to break out from this area to the downside.The Thursday candle and Friday candles show that there is no bullish strength to hold the price on the higher level.
Bulls could not hold the price on a higher level and when the price returned down they could not close the day above small indecision range. This shows that bulls do not have strength to hold the price on the higher level and it is an indication of bears' strength.
If we check currency strength meter we can see that USD strength is much stronger than EUR.
If the price breaks out to the downside and the second candle closes below the first candle it will be an indication of bearish pressure and price will model to $0.96716 support level.
If the price returns back inside the indecision range after a breakout to the downside it will be a signal of a false breakout where we can expect bulls to rally to the upside.
More By This Author:
EURUSD Forecast – Indecision Breakout Needed
EURUSD Forecast – Price Heading Towards $0.99134
EURUSD Forecast – Pullback With $1.03920 Target
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
Comments
