The price made three things I have mentioned in the previous week forecast.
- Reached $1.20800
- Made a pullback to $1.19300 – $1.19500 area
- Bounced back above $1.20000
After reaching the $1.20000 level the price bounced down as a reaction to strong sellers and buyers who took the profits. Strong resistance level acted as a strong psychological level(round number) that forced buyers to exit and sellers to enter.
The sell off did not last for too long and the price in the next three days moved higher. First strong resistance was at the $1.20800 level which did not hold the price for too long.
Even though the price $1.20800 was a strong confluence of resistance it did not retraced strongly back to the first support level.
This act was a strong confirmation that the price is in the strong bullish momentum since the breakout from the range area($1.17000 – $1.19000) that lasted 4 months, from the end of July until end of November.
Friday was a day when the price stopped. The price level that stopped the price $1.21793 was the first resistance after the breakout above $1.20800 which was a strong confluence of resistance levels.
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EURUSD Chart Forecast
I will look for bullish opportunities around the first support level which is now at $1.20800 level. It is a level of confluence of support.
The price almost reached that level on Friday, but the market was not so volatile. It was in the average pip range as usual, around 60 pips.
At the $1.20800 level price could find support to move higher and head towards $1.25000.
The first resistance level that is stopping the price reaching $1.25000 is $1.22845. It is an area around $1.3000 level.
If the price manages to break that price level, the price will be on the right path to succeed reaching December goal, and that is $1.25000.
Until then I am watching what the price will do on the first support level and what will do on the first resistance level.
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