EURUSD Forecast – Wait for a Breakout

by May 7, 2022EURUSD Forecast

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EURUSD Analysis Today

Previous EURUSD forecast talked about price making a retrace to $1.06736 and the price retraced, but only to $1.06410. It was close to the first target, but there is selling pressure on the upper side that is preventing that.

If we check the candles that were formed during the week we can see that the first two candles, Monday and Tuesday, were inside the previous week Friday candle. That was the signal price has some issues moving in any direction.

On Wednesday we had a large bullish candle that broke outside this small range and closed the day above the $1.05825 resistance line. This was a signal that buyers are stronger and we could see price higher.

But, on the next day we had a strong bearish candle that closed the day back inside a small range. And Friday was an indecision candle that confirmed one thing.

EURUSD Daily Forecast 7_5_2022

That thing is that the price is now in the indecision area where we need to wait for a breakout.

We can see Friday candle has reached lower levels than candles before and higher levels. That was the sign that the market is testing the price around this small range.

Next week we need to wait for the price to break out from this range. I am more inclined to see the price on higher levels because of the price action I see on the chart. Price has closed on Friday on higher levels than most candles this week.

And on the upper side we have more wicks than on the bottom which means pressure is from the down side that is pushing the price to higher levels.

$1.05825 is the first target for the bulls that must be broken and retested to verify the breakout.

That will mean $1.06736 and $1.07388 are the targets which was said in the previous EURUSD forecast.

Below we have $1.05087 as the support that is holding the price from moving down. We need breakout below this support to see the price reaching $1.03920.

For now, the smart move is to wait to see where the price will clear the path for the future move.

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 ourselves for a bullish or bearish scenario. Risk management is crucial in Forex trading so play safe and set stop loss.

See also  GBPUSD Analysis Today 4.2.2023 - GBPUSD Week Ahead Forecast

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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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