EURUSD Analysis Today
Previous EURUSD forecast talked about $1.03920 as a target and price reached that level on Monday. The strong bearish candle reached demand zone around $1.03820. That move confirmed strong bearish sentiment that has started with two strong bearish candles previous week when we had price on supply zone around $1.07825.
The demand around $1.03920 was a strong area and the price could not break further down. We can see that on Tuesday the price made a pullback upside, but selling pressure pushed the price down and created a large wick.
On Wednesday the price tried to move to the upside, but selling pressure has again held the price down with large wick. But on Thursday the bullish pressure moved the price upwards and through $1.05087 resistance level.
Price stopped at the uptrend channel resistance line which is a confluence level of resistance with $1.05825 horizontal resistance.
We can see that each day the price closed the day as a bullish candle. It was a signal that bullish pressure is stronger each day.
On Friday we had a small bearish candle that had a wick below $1.05087 support level, but the day closed at the demand zone around $1.05087.
The price is now between two levels, $1.05087 and $1.05825. It was a previous range area where the price stopped for a while.
With the wick below $1.05087 and weekly candle formation the price is suggesting a move down.
The price has closed the Friday below previous day candles bodies which is the first step to move further down. On the upper side we have $1.05825 resistance level as a decision level for buyers.
If the price manages to close the day above it will signal the sellers have lost momentum and the price should move higher.
But, as the market now looks at the weekly and monthly time frame the $1.03920 is still the next week target. While the price will be touching that level for a third time, the next support at $1.02975 becomes more realistic to be reached by the end of the month.
If we see the price next week below close to $1.03920 it will be highly likely the price will try to break below.
$1.02975 is a monthly and weekly support so we can expect price bouncing higher from that support level. It will be a nice entry level for a short term buying opportunity.
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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 ourselves for a bullish or bearish scenario. Risk management is crucial in Forex trading so play safe and set stop loss.