EURUSD Breakout from the Uptrend channel

by Dec 5, 2020Setups

EURUSD Outlook

EURUSD Yesterday’s chart analysis

 

The price made three things I have mentioned in the previous week forecast.

The price:

  • 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.

EURUSD Daily Forecast 05_12_2020

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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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If you want to know how much pips EURUSD moves each day in a week or how much it moves on London or New York trading session, you should check this article: EUR/USD Pip Range Analysis

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The Forex market is not easily predictable and we need to prepare our self for bullish or bearish scenario. Risk management is crucial in Forex trading so play safe and set stop loss.

“Disclosure: Some of the links in this post are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. This does not cost you anything extra on the usual cost of the product, and may sometimes cost less as I have some affiliate discounts in place I can offer you”

Frano Grgić

Frano Grgić

A Forex trader since 2009. I like to share my knowledge and I like to analyze the markets. My goal is to have a website which will be the first choice for traders and beginners. Market analysis is featured by Forex Factory next to large publications like DailyFX, Bloomberg... GetKnowTrading is becoming recognized among traders as a website with simple and effective market analysis.

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