EURUSD Analysis Today
Previous EURUSD forecast talked about price making a retrace to $1.04700 and the price has done that. The retrace happened pretty quickly. Just in two days the price returned and reached that level.
On Tuesday the price made a strong bullish candle reaching high levels inside the previous range area. After that price made a retrace back down to $1.04600 and from there a strong bullish engulfing candle broke through the previous range and closed the day above.
The close was above previous candles bodies inside the range area. This was a strong sign of bull’s strength which is an indication of the future move.
On Friday we have a small retrace where traders have exited from trades and taken the profit from the strong move upwards.
With strong bullish candles and breaking some critical levels to the upside we can look for the price on higher levels.
The retrace on Friday is a nice move that took the price to the first support area, a demand zone around $1.05087.
The candle close above previous candles body highs which is a good signal to look expect the price on the higher levels.
From here we can expect the price close to $1.06400 which is high on the previous bullish attempt to reach higher levels.
It is on the downtrend channel resistance line that prevents the price reaching higher levels. And above that we have a confluence of resistance that will make a problem for the price.
On the downside we need the price back below $1.05000 to continue looking for lower levels. Until that happens we need to wait to move outside the previous range area.
Entry EURUSD: If you want to see how to play this scenario join G-Trader
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.
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