Previous EURUSD forecast mentioned price range where the price was inside for a week. It took another week to breakout. Lets what has happened since then.
We had a false breakout to the upside where the second candle had returned the price back inside the price range.
Since then the price stayed inside the price range until it reached the downtrend channel resistance line.
When the price reached the resistance line the price broke to the upside and closed the day above price range. It reached the supply zone around $1.03920 and returned back down. Closed the day on the previous resistance level that now is acting as a support.
The breakout was confirmed with a second day candle which closed on a higher level. It was a nice confirmation of a breakout to the upside.
Friday was a day when the traders locked their profits until the price declined and returned back to the upper side of the price range.
The price is now on the upper side of the price range and it is testing that level as a support.
We need to wait and see if it holds, which will be a nice entry level for future move up.
The price could reach $1.02000 level to find better support for future move up.
We now have a price between upper level of a price range and resistance level at $1.02975 which needs to define where the price will move.
The breakout is a first signal the price will move up. We now need second confirmation as a support at the current level in the form of bullish price action signals like bullish engulfing bar or bullish Pin bar.
We could see candles wick on the lower level, but not under $1.01700.
The stop loss of the bullish entry should be below $1.00900 which is the lowest price of the previous candle that could not push the price lower. If this price level breaks on the selling pressure it will mean the sellers have taken over and we will see the price on the lower levels.
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