EURUSD Analysis Today
Previous week analysis talked about price having a hard time to break below $1.07825 after moving down to the demand zone.
At the start of the week the price continued moving down reaching $1.07825 support level. Next day, on Tuesday, the price formed an indecision candle touching the lower level of the demand zone.
After reaching the lower level of the demand zone price reversed and moved upwards touching the supply zone around $1.08846. That supply zone was in the confluence area of resistance where downtrend resistance line crosses with horizontal resistance level.
But, the price had strength to move upwards and on the next day reached higher levels. The highest level was $1.09360, which was the level candles from previous two weeks reached, but could not break above.
Selling pressure on that level formed a strong bearish Pin bar that suggested a move down. On Friday price followed bearish Pin bar signal and closed the day below previous daily candles.
Price broke the strong support level and closed the day below which suggests a future move down. The next target is 100 pips away support level $1.06736.
$1.07000 – $1.07300 is the demand zone where the price will find buyers waiting to open buy order and where the sellers will look to get out from sell orders.
That is the first level where we will see prices fluctuating and making retrace. Before seeing this retrace we could see price making a retest of the current resistance level $1.07825.
$1.06736 is a slightly weaker support than $1.07825 was, so we can expect if the price continues to move strongly down to break this support more easily than it was this week.
Stronger support below is around $1.05000 level so if we see next week’s price below $1.06736, that will be the next long term target.
On the upper side we have $1.08846 as the first short term resistance that is significant and $1.10755 as the main resistance bulls need to break above in order to change the market sentiment.
Since the price on higher time frames, monthly, weekly and daily targets lower levels and the trend is in downtrend it is less likely to see price on higher levels at this moment.
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