Starting from the beginning of the week the price has climbed and there was no day with bearish candles.
Meaning, there were buyers running the game this week.
On Tuesday we can see bearish Pin bar right on the weekly resistance line and close to the downtrend resistance line. But, those two could not hold the price on the next day. Price reached a downtrend resistance line and in the next two days reached $1.19000.
On Friday there was a slight pullback from $1.19000 which is a result of buyers exiting from the trades at the end of the week and reaching round level which is known strong resistance.
EURUSD Chart Forecast
As it was mentioned in the previous weekly analysis the $1.19000 is a breakpoint for the buyers. You can see that this level extends in the past as a strong resistance level, but not as a strong support.
That means we could see price fluctuating around $1.19000 and first strong support below.
That first support below is a confluence of previous resistance and now support lines. Those are weekly support trendline and daily downtrend line which is now support for buyers.
The confluence of support is now around $1.18000 – $1.18400.
The price could pullback from the current level and find new support if buyers stay strong as they were in this week.
If the price manages to break $1.19000 next resistance is at $1.20000. Buyers need to move the price above and close the day above to change the market overview.
If the price stays below $1.19000 and gets back to the downtrend channel the price could see again $1.17200 as a target in the following weeks. If the sellers manage to create strong bearish price action signals around current level it would be a sign of sellers taking over again.
As usual, after Monday ends we will see what the market could do for the rest of the week.
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