EURUSD Analysis Today
Previous EURUSD forecast mentioned the price could find a breakout to the downside, but we should be carefull and wait for a confirmation.
The breakout was on Tuesday and the confirmation was not visible in the following days. The confirmation signal with daily candle close below $0.99314.
The breakout was a false one on Tuesday and what usually happens after a false breakout the price moved in the opposite direction. We can see the bulls pushed the price to the supply zone around $1.01368 and the price bounced down in the indecision area.
Friday shows price decline after traders taking profits around $1.01368 who bought the price at the $0.99314 which activated a sell off returning the price down.
Next week we need to see the price above the small downtrend channel resistance line with daily close above which will allow price reaching $1.01368 level.
The supply area around $1.01368 is a strong confluence level of resistance which will represent a strong obstacle for the price reaching higher levels.
We can expect bearish candle at the confluence area of resistance with price targeting to reach the upper side of the current indecision area which is around $1.0000.
The current overview of the market suggests we need to wait until the price goes above $1.01368 or below $0.99314. These two levels are strong leves with sellers and buyers pushing the price in their direction. This is visible on the currency strength meter where EUR and USD strength show similar strength.
When the price breaks beyond these levels the price will have a clean way reaching next levels. On the upside we have $1.02975 which is above the downtrend channel which will be a signal the price is changing direction from bearish to potential bullish trend.
On the downside we have $0.96716 which is in the current bearish downtrend, but to reach lower levels we will need more EUR weakness, which is currently not visible on the chart.
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