EURUSD Forecast – $1.04700 Retrace Target

EURUSD Analysis Today

Previous EURUSD forecast talked about price making a breakout from a range that was held inside for two weeks.

The price made a breakout on Wednesday after testing the $1.05825 resistance three times.

The same day price formed a bearish pin bar after which the price made a breakout on downside.

After the breakout we can see 177 pips candle on Thursday that took the price to the first support level and that was $1.03920. The lowest price level the price reached was $1.03503.

Price stopped and made a retrace above $1.04000 on Friday which we can add to Friday exit where traders cash out after a strong move and get out from trades before the weekend.

What we have now is a clean situation for the bears. The price has broken below range and the break was not confirmed by the price. We can expect price moving higher close to $1.05000 resistance level and from there look for bearish price action signals.

That level would be $1.04700 as a high for the price on the retrace.

There is room for more testing candles on the lower side because the current support level is strong support and price is strongly pushed from the upper side. So, we could see price staying here for a while until we see bulls or bears weaken in this battle before confirming future direction.

Next support is $1.02975 which the price could try to reach. But, final support where the price is heading is $1.01368 which is low of the downtrend channel.

Now is the time to wait for the retrace to higher levels and from there look for a sell signal. That is around $1.05000 price where the price will find strong selling pressure and where the price will have a hard time to break above.

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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

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.