EURUSD Analysis Today
Previous EURUSD forecast talked about indecision range area where the price needed to breakout to make a move. The breakout happened to the downside.
On Monday the price had a false breakout from the range area to the upside where the next day the price returned back inside the range area. The bearish engulfing candlestick showed the strength of bears, but it was not a clear signal.
If the bearish engulfing candle closed below the range area that would be a clear signal the range is broken to the downside.
On Wednesday the price continued to move down which was indication the range area is broken and the price will move down.
On the last two days the price reached the previous two weeks target $1.03920 and bounced from the support. The bounce took the price back up close to $1.05087 reaching the supply zone around that resistance level.
The price then returned down following the breakout and closed the week close to $1.03920 support.
The price has broken below $1.03920 support level as in the last two attempts when it was moving from upside down. The price was pushed back up, but the week has ended close to this level. This is indication that the price has more bears behind pushing down.
The previous price movement around this level was to move up and reach first resistance so we can expect the same scenario reaching $1.05087. Except if the price manages to close the day below $1.03920 then we would have price moving to long term target $1.02975.
Now the price has two levels that are in the reach in the following weeks and in this month.
Weekly time frame shows us that we have a bearish engulfing candle formed. In the Weekly time frame $1.02975 is the support where we can expect to bounce to the upside. A retrace that could reach $1.05825 resistance level.
Monthly time frame shows us that we have a month closed below previous months. Monthly time frame shows us that $1.02975 is the first support where the price will bounce to the upside and $1.01368 as a strong support that will push the price higher.
If we take these information into consideration under the technical analysis process we have clear bearish signals signaling future move down.
So, we can expect the price heading to $1.02975 and $1.01368 in coming weeks.
If we take these three time frames into calculation the EURUSD price will move down around 200 pips from the current price.
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