EURUSD chart is showing that the price is inside range area that was formed two weeks ago.
EURUSD Chart Yesterday’s Summary
As we can see yesterday was a day with indecision in the market. Price have rise up to 1.08508 level and made a pullback to 1.08275 support level as was predicted on yesterday’s analysis.
On the 1.08275 support level a bullish Pinbar has formed and in the next H4 time frame price could not define in which direction should go.
An indecision candle have formed and it was broken on the next H4 time frame with the strong bounce from the 1.08275 support level, and that bounce pushed price up deeper in the range area.
Price almost touched range area resistance level at 1.08846 like previous Pinbar on 05.05.2020. but the price could not find strength to hold or to move further up. Sellers were to strong and they moved the price in the indecision area where the price currently is.
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EURUSD Forecast – Week Ahead
While we have several H4 candles that have wicks on the support level at 1.08275 and majority of the candles are showing bullish pressure, we could see price moving more up in the range area in the next few Forex trading sessions.
We also need to have in mind that we had a Friday as a day when the price do not leave correct signals so the price could start the week in completely different way than it is predicted.
For now, the best decision would be to hold until Monday ends after the price make some moves which will help to define future trend.
Last two times when the price entered into range area it took around 4 days to get out of that range. If the history repeats we could see price next week trying to break out.
EURUSD have different pip range on each trading session in a day and on each day in a week.
EURUSD Chart – Bullish Scenario
The price have made a pullback to the support level at 1.08275 and created a Pinbar which was not that strong but it indicated that the bulls have some strength and sellers have get out from the trades.
We could see price trying to reach resistance level at 1.08846 from where the price could stall a little bit and make some high on that level. After that if the price break out from the range the next level is 1.09371.
EURUSD Chart – Bearish Scenario
Bears were strong last week but in the last two days they have lost strength. Strength was lost because sellers got out from their trades to take out the profit.
Next week we could expect that price reaches resistance level at 1.08846-1.09028. From there a bearish price action signal could trigger a strong move back to support level where we should wait for break out.
If the price break out further down the best is to wait a pullback to 1.08275 level and from there wait for bearish price action signal.
Monday is usually a day when the market is preparing to define a move for the next two or three days. So, on Monday is better to see what happens and then enter if there is any trading signal on the chart.
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