EURUSD Forecast – Price Found Its Way Down – Looking to Reach $1.19000

by Feb 6, 2021Setups1 comment

EURUSD Forecast

EURUSD chart analysis

 

The market has changed its direction and price managed to break below uptrend channel. The price has broken even below first support $1.20000 which did not show too much strength.

What we can see in the chart is that the price has reached the $1.20000 level on Wednesday, but the price has stalled just for a few hours.

We can see a bearish candle that has a larger wick that tells us we had bulls fighting and defending this level. Their resistance was futile because sellers pushed the price below.

After breaking below we can see a clean situation where trades cash out from the market before the weekend.

Large candle on Friday shows how the price has returned its value above the support line just because many traders have closed their trades to take the profit from the market.

If there was no Friday maybe we would not see this bullish candle.

EURUSD Daily Forecast 06_02_2021

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EURUSD Chart Forecast

For the next week I will look for bearish signals because the price has changed the direction by closing below $1.20800. This level was a strong support, but the price has changed the direction and now is looking for lower levels.

I have made a downtrend channel so we can see where the next support and resistance could be.

The price could find resistance at the confluence of resistance around $1.20800. From there the price could move down to $1.20000 to try breaking again down.

Below is the support that is also confluence of support around $1.19000 level. That level was a hard resistance in the past where the price could not break above in October and November last year.

I am now bearish oriented until the price reaches the $1.19000 level.

Entry EURUSD: If you want to see how to play this scenario join G-Trader

If you want to know how much pips EURUSD moves each day in a week or how much it moves on London or New York trading session, you should check this article: EUR/USD Pip Range Analysis

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The Forex market is not easily predictable and we need to prepare our self for bullish or bearish scenario. Risk management is crucial in Forex trading so play safe and set stop loss.

“Disclosure: Some of the links in this post are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. This does not cost you anything extra on the usual cost of the product, and may sometimes cost less as I have some affiliate discounts in place I can offer you”

Frano Grgić

Frano Grgić

A Forex trader since 2009. I like to share my knowledge and I like to analyze the markets. My goal is to have a website which will be the first choice for traders and beginners. Market analysis is featured by Forex Factory next to large publications like DailyFX, Bloomberg... GetKnowTrading is becoming recognized among traders as a website with simple and effective market analysis.

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1 Comment

  1. Abdul

    Hey Frano, nice analysis…we have started copying to realtradernews.com

    Please reach out to me so we can get you some banners..

    Keep the good work coming.
    Talk to you soon.

    Abdul

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