EURUSD Week Ahead Forecast
Video length 00:06:27
Our previous EURUSD forecast talked about reaching $1.02975 and $1.01368 as a weekly and monthly target. It did not take that much time - it reached these two targets this week. This tells us that the bears were too strong for bulls so the EUR lost a lot of its value
On Monday we had an indecision candle where the bulls tried to push the price up, but the price closed the day near the open price.
The next day the price dropped 200 pips reaching the first support mentioned last week, $1.02795. The price did not stop at that support level, but it continued moving down.
The move down had no obstacles until $1.01368, which is visible on the chart. The price stopped in the demand zone around $1.01368. The price bounced upwards, but that bounce was too weak.
We can see the price has entered into the downtrend channel and reached the demand zone and bounced back to test the downtrend channel resistance line.
From there the price on Friday moved more down, breaking through $1.01368, but the day could not close below. The price returned up and closed the day above support level.
The week ended with a bullish Pin bar which is a signal for the next week.
Friday Pin bar shows where the price will move next week. The pin bar has formed right on the support level which is weekly and monthly support that had retraced in the past.
We can use this price action signal on the support level and look for the exit on the first resistance at $1.02975.
The weekly and monthly charts show that retrace can go up to $1.05087 level so we should look for that scenario, unless something happens in the meantime and the market shows bulls' weakness.
The next support is at $0.99134 which is more than 100 pips away from the current price and it is a parity for the USD and EUR.
As it looks now the parity is just a matter of time because EUR is losing its strength and USD strength is rising. So, overall the monthly and weekly overview shows the parity highly likely.
More By This Author:
EURUSD Forecast – $1.02975 Daily, Weekly And Monthly Target
EURUSD Forecast – $1.05087 And $1.05825 Range Breakout Needed
EURUSD Forecast – $1.03920 Still The 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
