EURUSD chart tells us a story where the bears have tight fight to pull the price down from the range area.
Yesterday was a day with great fight on the EURUSD market where bears have crushed bulls after bulls have tried to take the price higher in the range area. Range area is between 1.08275 – 1.08846.
After several H4 small candles that were indecision in the market without clear sign where the price will move, we had strong bullish H4 candle, on the overlap between London and New York trading session, reaching resistance level at 1.08846.
That is the upper side of the range area, area in which the price is trading for several days.
As discussed yesterday I have pointed that the price could reverse back to the support level at 1.08275 before creating bullish price action signal.
The price have reversed back close to the support level at 1.08275 and have made small bullish Pinbar. After the Pinbar price have moved up all the way next to the resistance level at 1.08846.
Even we had a strong bullish candle, that was all from the bulls. Bears have pushed the price from the top of the range area all the way to the bottom of the range area, to the 1.08275 level.
Bears have formed strong bearish engulfing bar which covers several H4 candles. That means bears have overtake all bulls on the market. With strong Pinbar from earlier trading sessions, bears are showing more power than bulls.
With all those bearish signals we could see bears dominating on the market for the next day.
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Today’s EURUSD Chart Forecast
We could see price reaching first support level at 1.07825 which is area with horizontal support line and daily trend line.
Those two lines make a strong confluence support which will be hard to break. But with strong bearish engulfing candle we currently have it could be possible that we see the price going through that strong confluence support level.
EURUSD have different pip range on each trading session in a day and on each day in a week.
EURUSD Chart – Bearish Scenario
If the price manages to close on the H4 candle below 1.07825 level we could see price moving down. After the price breaks down through confluence support level the next level is 1.07356 support.
From there we will see will the price make a retrace back to the old support level at 1.07825 and make a bearish price action signal. If it creates bearish price action signal it will suggest that the price is heading down to 1.07000 support level.
EURUSD Chart – Bullish Scenario
We cannot rule out bullish scenario even now as it looks like it is not real that it will happen.
If the price manages to make a pullback into the range area it will give slight chance for the bulls to try to break above the range area resistance level at 1.08846.
As we are close to the area where daily trend line and range area are coming to each other, we will see price squeezing in the narrow area. If the price do not make its way outside from the narrow area, we could expect strong breakout.
Will it move down or up it depends on the price signal which we will see in the next days.
What is your opinion on today analysis? Do you think the bears will manage to push the price down through strong support level?
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