EURUSD Analysis Today
Previous EURUSD forecast mentioned possible higher levels if the price manage to break above small downtrend resistance line.
On Monday the price formed a bullish candle with daily close above previous day candle close. This was indication the price is continuing moving in the same direction as the previous week has ended.
On Tuesday the price managed to reach the resistance line of the downtrend channel, but it could not close above. The price formed a bearish engulfing candle that encompassed the previous daily candle. It was a small signal the bears are holding the supply zone around the resistance line of the downtrend channel.
Wednesday was a day the price made a breakout to the downside reaching lower levels than in the last breakout to the downside which was a false one.
The price reached a downtrend support line and then returned back to $0.99134 which now acted as a resistance level. The price formed a bearish Pin bar which was a sign the price has made a positive breakout. The price did not return inside indecision range, but stopped on the resistance line and pushed down again.
From there the price formed a strong bearish candle on Friday where the price reached $0.96716 support level. We cannot see a bounce or strong retrace indicating sellers going out which represents possible future move down.
We have a price on Friday without retracing too much which indicates the sellers did not get out from their trades to lock the profits. This means there is still strong selling momentum in this move so we can expect further decline in price.
The first small support and demand zone that will hold the price is $0.96000 price that acted as a support in the previous bearish attempt to reach lower levels.
From there we can expect the price to return back up and if the bulls are strong enough the price could reach the first supply zone at $0.98300. This is a confluence area where the price has formed a Pin bar this week and where the price stalled for a while before breaking below the downtrend channel support line.
The market is in bearish mode so we can expect the price to move lower and to reach $0.94861 support level which is weekly and monthly support level. This gives the importance to the price level where sellers will try to get out and buyers to get in to change the price direction.
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