The week ended with the price above the weekly starting price which was around $1.18600. The current price is $1.18729 which means bulls have made to close the week above open price.
Looking from the start of the week the price moved higher to reach $1.19000 and then returned down to $1.17800 which is close to the weekly uptrend line. The move was explained in the last weekly analysis.
From there the price moved down close to the confluence of support, but the price returned higher with daily bullish engulfing candle.
The Thursday and Friday candles overtook previous 3 day candles which suggests a strong bullish move.
The best Harmonic scanner
From $17.99 / month
8 Harmonic patterns
9 Standard patterns
Web based platform
Real time notifications
EURUSD Chart Forecast
The bullish Pin bar from last week was not so strong indication of bulls, but this week’s engulfing candle shows me more bull’s strength.
At this moment I cannot say the bulls are stronger and the price will move above $1.19000 because the candles and engulfing formation is not at the confluence of support. It is close to, but it is not in the right place.
I would like to see the price reaching lower levels close to $1.17000 and then seeing a nice bullish price action signal.
Weekly time frame shows a bullish Pin bar close to the support trend line, but the price is in an area without stronger support levels which would emphasize bullish strength.
If the daily candle closes above $1.19000 then it would be a sign of a bullish scenario forming on the market and taking over the bears.
But, if we see a bearish price action signal on the $1.19000 level then the $1.17200 level is still in play. From $1.17200 would be starting point for the bulls if we see daily bullish price action signal.
Trading Analysis Bonus
As a bonus I am sending entry ideas.
ONLY for G-Trader members.