The price played out just like it was mentioned in the previous week’s analysis. The price broke above $1.20000 and reached $1.20800 level.
From the $1.20800 price bounced back down because lots of sellers entered and buyers cashed out their profits. The move we see on the chart shows me that buyers have cashed out and entered again on the bounce on the $1.20000 level.
Friday ended with a strong bullish candle which means there are no sellers next to $1.20800 and we could see the price next week moving higher.
The best Harmonic scanner
From $17.99 / month
8 Harmonic patterns
9 Standard patterns
Web based platform
Real time notifications
EURUSD Chart Forecast
The break above $1.20800 will not be so easy, but I think it will take a few days until the price breaks above and settles above as a new area for buyers. That means $1.20800 will act as a support and resistance for the price in the following days.
Resistance at $1.21800 is stronger resistance and it will play a major role for the price to break above and to reach levels above $1.22000. If the price manages to close above $1.22000 it will have a clear path to $1.23000 as a new high.
I am expecting the price to stay for some time between $1.21800 and $1.20800 before moving further up.
Trading Analysis Bonus
As a bonus I am sending entry ideas.
ONLY for G-Trader members.