EURUSD Forecast – Small Range Area is Forming

by Jan 2, 2021Setups

EURUSD Forecast

EURUSD chart analysis


We had EURUSD making a bullish candle on the confluence support area right at the start of the week. As I said in the previous week EURUSD forecast   the support $1.21793 was the support that holds the price from falling down.

From there the price moved higher to the first resistance I have mentioned, $1.22845. The price even moved a little higher to the round number $1.23000. And this was on Thursday.

On Thursday, which was the last day of this year, the price fell. And the reason why, is because it was the last day in a year. Similar case we can see at the end of the week where traders get out before the weekend.

And because it is the end of the year traders that trade in large companies with huge amounts of money, like money funds, they close their trades to close the trading year.

EURUSD Daily Forecast 02_01_2021

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EURUSD Chart Forecast

As I mentioned in the previous week forecast we could get into the ranging area. And For now we are inside a range between $1.21793 and $1.22845.

We can expect the price to reach a confluence level of support and from there move up. The $1.22845 is the resistance that will be harder to break above. When that happens the price will have $1.24000 level as a harder level before it reaches $1.25000.

At the beginning of the new year, on Monday, I will stay outside of the market just to see what the market and other traders will do. That way I will try to avoid getting into the trap of false signals.

On Tuesday the market will make a small trend and it will be easier to see where the potential direction is.

As long as the price is above the previous uptrend channel resistance line which you can see on the chart I am bullish oriented.

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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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