EURUSD Analysis Today
Previous EURUSD forecast talked about $1.08846 as a resistance that need to be broken in order to continue to move up. And it was mentioned that the price is in between support and resistance level, between $1.07825 and $1.08846, and it needs to move somewhere outside of this range.
The price did not move outside, but bounced between these two levels.
The price moved down the first two day, but then on Wednesday the price found great support in the $1.07825 demand zone.
The price moved on Thursday and Friday to higher levels and the week ended as the previous week closed.
The current price level tells me that the price has managed to reach the previous week close and it has strength to move higher. That is based on the strong bullish momentum in the last two days, where the selling pressure that was pushing the price on Monday and Tuesday did not manage to prevent price reaching $1.08555 level.
We can expect that the price will have trouble breaking the $1.08846 resistance level because we have a monthly trendline that is making another resistance for the price. So, two resistance lines making a confluence of resistance are making a problem for the price.
But, if we take a look at the weekly time frame we can see that the weekly candle has confirmed bullish trend and we can expect to see the price on these levels or higher.
The target after the price break $1.08846 is $1.09100 – $1.09200, which is the first daily resistance before heading to $1.09800.
We need to see the weekly candle closing above $1.08846 and confirming that level as a next support before attempting to move to higher levels.
Next week we could price break $1.08846, but after that happens we will see what the price will do as a next step.
The price is currently in the between support and resistance levels, $1.07825 and $1.08846, which is not a good entry position. When the breakout to the upside happens, I will look for entry on the retrace testing the $1.08846 as a support.
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