EURUSD Forecast – Small Range Area Is Forming
We had EURUSD making a bullish candle on the confluence support area right at the start of the week. As I said in the previous week's EURUSD forecast the support $1.21793 was the support that holds the price from falling down.
From there the price moved higher to the first resistance I have mentioned, $1.22845. The price even moved a little higher to the round number $1.23000. And this was on Thursday.
On Thursday, which was the last day of this year, the price fell. And the reason why, is because it was the last day in a year. Similarly we can see at the end of the week traders get out before the weekend.
And because it is the end of the year, traders that trade in large companies with huge amounts of money, like money funds, close their trades to close the trading year.
I mentioned in the previous week forecast we could get into the ranging area. For now we are inside a range between $1.21793 and $1.22845.
We can expect the price to reach a confluence level of support and from there move up. The $1.22845 is the resistance that will be harder to break above. When that happens the price will have $1.24000 level as a harder level before it reaches $1.25000.
At the beginning of the new year, on Monday, I will stay outside of the market just to see what the market and other traders will do. That way I will try to avoid getting into the trap of false signals.
On Tuesday the market will make a small trend and it will be easier to see where the potential direction is.
As long as the price is above the previous uptrend channel resistance line which you can see on the chart, I am bullish oriented.
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
