EURUSD Analysis Today
As mentioned in the previous EUR/USD analysis, Monday was the day when the market made a decision where it will move for the whole week. We can see a bullish Pin bar formed on Monday on the $1.09860 support level.
Tuesday had a strong bullish move that closed the price above $1.10755 resistance level which was confirmation of future move up. We can see wick on the upper side reaching higher levels than the previous bullish attempt.
On Wednesday we had a bullish candle that took the price close to $1.11871 resistance level, but it reached the start of the demand zone.
Thursday the price reached higher levels and touched $1.11871 almost in a pip. From there the price returned back down because of the strong demand zone and sellers waiting to push the price down. There were also buyers getting out locking the profits which helped to move the price down.
Thursday ended as a bearish engulfing candle which closed below $1.10755 support level. That was a sign the price will move further down.
On Friday the price moved slightly down, but the price reached the downtrend channel support line and stopped there.
The price has moved outside of the indecision area previous week and now it is back almost where it started. So we need to see where the price will move in the coming week.
We have a $1.09860 support level as the next support level where the price is heading. Currently the price has only a downtrend channel support line in front, but because of missing more support strength we should see the price moving down.
There could be a slight reverse back to $1.10755 after the strong sell off on the last two days this trading week, but from there we could see bearish pressure.
$1.09860 is the target for the next week which will be the decision level for the bears and bulls. Bears are pushing from the upper side, but bulls have strength to hold the price above. This we have seen in the previous week.
The $1.09860 is a confluence of support where we have horizontal support level with two downtrend channel support lines. That support zone will hold the price for a while.
If the price breaks below $1.09860 we will see the price around $1.08846 which is the decision level for bears. If the price breaks below we could see a strong sell off and EUR/USD price moving towards $1.07825.
On the upper side $1.10755 is the first level that must be broken on a daily basis and then $1.11871 as the final step for bulls to change the market sentiment.
We have seen what the price has done on the $1.11871 which represents the ultimate resistance level for the price to change the market bias from bearish to bullish.
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