The price broke above $1.21800 on Tuesday and we had strong buying sentiment. Then the market reversed back down to find support on the $1.21800 which happened on Wednesday.
Reaching $1.21800 the price found support that pushed the price back up, but it did not last too long. It returned back down on Friday and stopped there.
Overall, the week was bullish and we had a breakout above strong resistance which now acts as a support.
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EURUSD Chart Forecast
What does this breakout and current market overview tell me?
It shows me the buyers are strong and the price is above strong support. Strong bullish candles are larger and cleaner and making new highs.
The price is now on the support level which I discussed last week it could reach before moving higher to $1.22800.
I like to look on the weekly time frame and what I can see it just started the move up. So I am expecting the price to move up and try to break above $1.22800.
Break below $1.21800 would push the price down to $1.20800, but I am not expecting to have that scenario.
When the price reaches $1.22800 you can expect to have some sell off because lots of sellers are waiting there and many buyers will get out of the market. Be careful around that level and prepare stop loss or at least lock your profits earlier to prevent losing profits.
I am bullish oriented and I will look at buying opportunities.
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