We are back in the range area between 1.08275 and confluence level from previous week. The price have pushed up to the confluence level and it was pulled back to support level. The push up was with large bullish engulfing bar which reveals that on this support line we have a lot of buyers ready to push the price up again and test the resistance confluence level.
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The price rejected with large bearish bar but bears could not hold on for to long because another bullish engulfing bar have pushed the price back up. Even though the engulfing bar is relatively small the price shows that it could go up to make test on the resistance level inside confluence level.
Today's Forecast
The best is to wait to see what the price will do in the next day or two. The situation could get better and price could determine further direction.
If the price go up to the confluence level the best is to wait for the price action signal where the price could make a bearish signal which would be signal to open sell order. While the price likes to make Pinbar on the confluence level that would be the best signal to wait.
If the price manages to close below 1.08200 level on H4 time frame which would be close below previous day's candle close on H4, it would indicate that the price is ready to attack again support level at 1.07825.
For now I am more inclined to the sellers because daily price action signal, Pinbar, tells that the price is under bears attack and on H4 time frame we can see that the confluence level is a strong level that is not easy to break. If the price breaks down from the confluence level we could see 200 pips move down to 1.0700.
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The market is not easily predictable and we need to prepare ourselfs for bullish or bearish scenario. Risk management is crucial in trading so play safe and set stop loss.
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