EURUSD Analysis Today
Previous EURUSD forecast talked about price targeting $1.08300 which is close to the monthly triangle support line. But, the price could not break above $1.07825 resistance level.
The price reached $1.07825 resistance and made a retrace back down to $1.06736 where it bounced back up, but returned down and broke below $1.06736 support level.
The break below was short lasting because the price on Thursday returned above $1.06736 and closed the day above previous week’s close price. And on Friday the price reached the supply zone around $1.07825 and it was rejected back down and closed the day below this week’s open price.
That is a symbolic indication of where the price could move next week.
Next week we could see a price close to $1.06736 because the price closed the week below previous week close price and this week open price. There is supply around $1.07825 that is pushing the price down and it seems it is not exhausted completely that would allow future move upwards.
$1.06736 is now a base for buyers which they will defend and it will be a base for future moves to the higher price. As it looks now $1.07825 is strong resistance that will not be easy to break, but if the price stays close to that resistance and tries to break above eventually it will break above.
We have $1.05825 as a second support that looks as a possible support because the price has broken $1.06736 this week which is indication of a strength loss. So, if the price breaks below we can expect the price to reach $1.05825.
We now have an uptrend channel support line that makes a confluence of support with $1.05825 support so the price will have a hard time to break below.
The price needs to break above $1.07825 to reach the previous week target, $1.08300, which is a confluence of resistance with the monthly triangle support line. That is why the price will have a hard time to easily reach that target and there is strong supply that will push the price down each time it comes close to it.
We now have $1.06736 as a support that will decide if the price moves down or up. If it holds next week without breaking below it will be a base for future moves up and we will see a price trying to break above $1.07825.
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