EURUSD Analysis Today
Previous EURUSD forecast talked about possible breakout to the upside through the small downtrend channel resistance.
The price opened a week with a gap to the upside and reached the weekly target mentioned last week. The strong bullish trigger to the upside pushed the price higher and the price reached $1.01960.
The price stopped on the strong supply zone where we have a confluence of resistance. It stopped on the second supply zone mentioned in the previous analysis and from there the price returned down inside the indecision area.
Strong supply zone with sellers entering the trades and buyers exiting their trades and locking the profits pushed the price down.
Week ended with the price inside the indecision area between supply and demand zone.
What was mentioned in the previous analysis we have a similar scenario. The price is likely to break again to the upside. But, have in mind that the breakout on Monday and Tuesday was a false breakout with the second candle returning back down instead continuing up.
We have had two false breakouts in the last two weeks and bulls and bears have one. So, this represents an indecision on the market where it is best to wait until a clean breakout happens.
The price still needs to break above the small downtrend channel resistance line and small supply zone slightly above that resistance line. And then the strong supply zone around $1.01368.
The current overview of the market suggests we need to wait until the price goes above $1.01368 or below $0.99314. These two levels are strong leves with sellers and buyers pushing the price in their direction. This is visible on the currency strength meter where EUR and USD strength show similar strength, but EUR slightly stronger than USD.
When the price breaks beyond these levels the price will have a clean way reaching next levels. On the upside we have $1.02975 which is above the downtrend channel which will be a signal the price is changing direction from bearish to potential bullish trend.
On the downside we have $0.96716 which is in the current bearish downtrend, but to reach lower levels we will need more EUR weakness, which is currently not visible on the chart.
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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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