EURUSD Analysis Today
In the EURUSD previous analysis I have mentioned the price is targeting $1.09860 and the price done that. And if the price breaks below that price we could see the price heading down to $1.08846 if the $1.09860 is broken.
And price has done that easily where we did not see any bullish candle. In two days the price has dropped 130 pips. That is close to the EURUSD pip range on average where EURUSD price moves around 80 pips per day.
In the next two days, Wednesday and Thursday, we have candles with a small body, but large wicks on the upper side. Upper side wicks tells us the price has found demand on the $1.08846 which made the price bounce upwards.
But, the bearish strength returned the price down.
On the down side we have small wicks where bearish pressure pushed the price below $1.08846. Each day’s price closed the day below the previous day’s candle close price. That shows bearish strength again which culminated on Friday
On Friday the price broke below even more and almost reached $1.07825 which was mentioned in the previous analysis as a potential target if the price breaks below $1.08846.
Price formed a bullish Pin bar with the candle body closed below the previous day candle close.
Because the candle on Friday closed below the previous day’s candle close I am inclined to see the price even more down. The final target for the price is at $1.07825 which is strong support for the price.
If we take a look into the history chart we can see this level as a strong support. The support holded the price from falling further down so we can expect the same scenario now.
The price is not in the demand zone around $1.08846 with a bullish Pin bar. The Pin bar is in a good position to make a retrace for the price. The retrace could move to $1.09860 which is now a resistance, but the previous week does not show too much space for that move.
We can see currency strength meter shows USD strength weaker than previous week so this is a signal that we should take into consideration.
We have downtrend channel resistance with a horizontal resistance line that will pose an obstacle for the price to move higher.
On Monday we will see where the price will move which could show a signal for the rest of the week.
To cancel this bearish sentiment in the last two weeks the first step is to return above $1.09860 and then to break above $1.10755. Those two levels are crucial for bulls if they want to stop this sell off.
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