EURUSD Analysis Today
If we check previous analysis we can see I have mentioned several things. First one is that we could see the price returning back down to $1.09860 which is support for the price. And the price has done that.
On Monday we can see bearish candles and on Tuesday a bullish Pin bar. Monday has shown us the direction of the week where the price continued moving down to the first support level.
Second thing I have mentioned was if the price creates a bullish price action signal around $1.09860 that would be an indication the price will move up and we can enter the market.
The price formed a bullish Pin bar on Tuesday which was a signal to enter into the market. Pin bar formed on the support level and on the uptrend line of the short uptrend channel that is visible on the chart.
We have a strong wick reaching support level and a small body that was still inside a short uptrend channel.
On Wednesday the price had a hard time to move up and formed a bearish candle where the day closed below the previous candle body which was a small indication the price had some trouble moving higher. And the wick on the candle reached almost the same low level as the candle the day before.
On Thursday we again have bearish candles where the price closed again below the previous candle body which suggested the price had some problems.
On Friday we have a candle that has a large wick on the upper side almost reaching the downtrend channel line which is currently resistance. And from there the price returned back down where the day ended below previous candle lows.
How the previous week ended the price suggests further decline because each day has closed below the previous day. Which means the price has a hard time to maintain prices on the higher levels.
But, because the candles are small and I see wicks on both sides, upper side and down side, the price is currently in the indecision area.
The price is squeezing and we could see strong moves when the price broke outside. On the down side we have a $1.09860 support level and then targeting $1.09000 level.
On the upper side we have a $1.10755 resistance level and then targeting $1.11871.
We can see that the price from Tuesday is outside a small uptrend channel which means it has lost bullish momentum. And from Tuesday we have a small triangle that broke above, but there was no confirmation of the breakout. Instead the price returned back down and closed the day below the previous day candle body.
This time I will wait until Monday to see what the price will do. Will the price break below $1.09860 which will mean further decline or it will break above which will target $1.10755.
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.