Previous day's summary
Weekend forecast for the week ahead was about possibility that bears could move the price to the first support level at 1.08275 which was tested last week.
The price first have formed Pinbar on H4 and then small range around confluence level which lasted for several H4 sessions.
We can see small bearish engulfing bar on yesterday which rejected few pips from the confluence level around 1.08920 which is the high of the Pinbar from Friday.
If we go to H1 time frame just to see what happened we can see Pinbar formed on that level which pushed the price back from confluence level.
(Click on image to enlarge)
When the price breakdown from that range the first level where it rejected was the support line 1.08275 which tells us that this level is still significant.
Today's Forecast
While we have bearish scenario we should look for price breakdown through 1.08275 support level. If the price breakdown and close the H4 candle below previous close from 17.04.2020. candles, we could see price moving down to daily support line at 1.07825. Before doing that price could make a small bounce as a pullback from 1.08275 up to 1.08508 level and make price action pattern that could move the price down.
(Click on image to enlarge)
After breaking down through support line we should watch for the pullback to 1.08275 level and wait for bearish price action before entering into sell trade. Price action pattern can form as a bearish Pinbar or engulfing bar which will confirm that the sellers are in control and the price could move down.
Always set stop loss and proper lot size to prevent losing money from false signals.
Bullish scenario
Bullish scenario is less likely to happen but we cannot leave that possibility out from the analysis. If the price rejects from the support level at 1.08275 we could see price moving back to the first resistance area between 1.08920-1.09028.
Comments
Log in or sign up to join the conversation.