This week’s price did not reach the previous analysis predicted level, but the market overview looks like it is preparing to move up.
We had a bullish Pin bar formed on Tuesday where the price could not close below lows of previous candles. That was one signal the price had a hard time to move down.
Then we had a strong bullish candle which covered six previous candles, but could not close above those candles close price. That was also a signal the price had a hard time to move higher.
Next day the price returned down, but the pullback was not so strong and the price remained inside a large bullish candle.
This means the price is in control of bulls.
On Friday we had a small bullish candle whose low price was not below a large bullish candle and that suggests the price has strong support on $1.12650 level.
You can see the price has been in range for the last two weeks and it is bouncing inside the supply/demand zone that is marked with an orange rectangle.
As the market now looks it seems the price will move higher and reach $1.14000 which is a confluence of resistance.
The area between $1.14000 and $1.14748 is the area for the price where it will be defined will the price continue moving down or it will try to break above and return to the downtrend channel.
In the short term the price will move up and from the current price it is likely we will see 100 – 150 pips move up.
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