EURUSD – Bullish Breakout Confirmed

by Oct 10, 2020Setups2 comments

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EURUSD Outlook

EURUSD Yesterday’s chart analysis

The pair returned again inside range area that was active from July 27 until September 22.

Bears could not hold the price below $1.17000. The EURUSD has fall down to the first support level at $1.16178 where it found buyers that stopped the price.

The pair needed only two strong bullish candles to get back above $1.17000 level which shows that the pair have buyers strong enough to hold the price from moving down.

The price stopped at the old support level around $1.17200 and it needed almost a week to make its way further up.

You can see I have drawn downtrend lines to watch the price when it will break outside downtrend channel. The breakout started this week on Monday and throughout whole week price needed to get enough buyers to find its way further up.

After the breakout you can see on the H4 time frame that there was a bullish Pinbar next to downtrend resistance line that now acts as a support.

This bullish signal was a confirmation that the breakout from the downtrend channel is done and the price will move up.

EURUSD Daily Forecast 10_10_2020

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EURUSD Chart Forecast

The price is now free to move up and first resistance that will hold the price from further move up is at $1.19000.

This price was a tough level to break above in the past. You can see the range area that lasted for two months could not find its way above even the price touched the $1.19000 four times.

First level where the price could find resistance before reaching $1.19000 is 1.18600 level. There we could see price stalling and making a pullback.

The EURUSD needs to break above $1.19000 level before thinking to reach next resistance level at $1.20000.

In bearish scenario we need the price below $1.17000. Until that happens I am bullish oriented. If the price gets back down below $1.17000, first support that needs to be broken is $1.16178.

After that the area around $1.15000 is the strong support that will hold the price.

EURUSD H4 Forecast 10_10_2020

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If you want to know how much pips EURUSD moves each day in a week or how much it moves on London or New York trading session, you should check this article: EUR/USD Pip Range Analysis

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The Forex market is not easily predictable and we need to prepare our self for bullish or bearish scenario. Risk management is crucial in Forex trading so play safe and set stop loss.

Frano Grgić

Frano Grgić

A Forex trader since 2009. I like to share my knowledge and I like to analyze the markets. My goal is to have a website which will be the first choice for traders and beginners.

2 Comments

  1. Justice

    Nice

    • Frano Grgić

      Thanks

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