EURUSD – Bulls Are in Control

Yesterday’s Summary

We had bullish scenario from yesterday’s analysis where bulls managed to drive the price higher. Price have gone outside symetrical wedge pattern which is the second time it has done that.

As I have pointed on yesterday’s analysis, if the price manage to break out of the wedge through daily trend line, we could see pullback to daily trend line. That happened on the H1 time frame where we had a large bullish engulfing candle which was a clear sign to enter into buy order.

Strong bullish move has taken the price all the way up to the strong resistance level at 1.09860. That level was tested for the fourth time since 14.04.2020.

Back then it was reached for the first time and price bounced all the way down to the daily trend line and strong support at 1.07356 level.

Today’s EURUSD Chart Forecast

We have now price bounced from the resistance line at 1.09860 where candles look like the bulls have much more strength.

Bounce has been realized with small bear candles which does not give to much confidence in the bear strength. That is why we should watch for the bullish price action signal.

EURUSD Chart – Bullish Scenario

As it looks like we could see price trying to break above resistance line at 1.09860. To make that happen, first we could see bullish price action signal between two smaller support lines, 1.09371 and 1.09540.

That is the area where we had small confluence between buyers and sellers on 20.05. and 21.05.

If we see price closing on H4 time frame above 1.09860 we could see price moving more higher to the 1.10373 level. If the price close above and to make that break valid we should wait for the bullish confirmation.

Confirmation could be small retrace to 1.09860 and then bullish price action signal before moving up.

EURUSD Chart – Bearish Scenario

To have bearish scenario we need to see price closing below support area at 1.08846. Until the price is above that area I am looking for bullish entries.

The 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.