It was hard to break above and the price action shows that with candles on the chart.
Monday was a day when the price could not make its way, up or down. Tuesday was a day when the market decided to move up by forming a bullish Pinbar. That was the signal we will see the price above.
Day later, on Wednesday, we had a strong bullish candle with H4 bullish engulfing candle which took the price above $1.20800. That day closed above the resistance level which now acts as a support.
The price managed to reach some highs, but not $1.21800 which is the next resistance. Now the price has returned back down close to $1.20000 which now acts as a support.
Pullback on Friday happened because of traders moving out from the market and cashing money out after the breakout.
The best Harmonic scanner
From $24.99 / month
8 Harmonic patterns
9 Standard patterns
Web based platform
Real time notifications
EURUSD Chart Forecast
The price will likely stay here in the range between $1.20000 and $1.21800 before trying to break above $1.21800.
The buying opportunity is now around $1.20000 with a bullish signal which must be formed before entering into the trade.
Have in mind that the pullback to $1.19600 is not ruled out because it is the low the price usually reaches when moving around $1.20000.
Break below $1.20000 is less likely because the market structure does not look to lose its ground. Bears are not strong as you can see because there are no strong bearish candles except on a Friday. Only unusual news could trigger a move down.
Trading Analysis Bonus
I am sharing trading analysis each week.
It is free and if you want to receive e-mail notification, sign up.