I have pointed out on Saturday’s forecast that the price could make a move into the previous range area. The test was done and the price have rejected after entering into the range area.
First, price have stopped for a while on the upper side of the range area. It stopped on the 1.08846 level and bounced from the 1.08846 to 1.09028 level. This small range is an area where the price cannot find its way out.
That area means we have indecision between buyers and sellers. Indecision have made consolidation where the price is building its momentum before moving in one direction.
Only one bullish Pinbar managed to push the price back from the previous range area which tells us that the price could move up and area below is closed. Pinbar is a sign that below 1.08846 we have buyers ready to defend area and there are no sellers that could drive the price down.
At least not at this moment.
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Today’s EURUSD Chart Forecast
As we can see on the chart, current H4 candle have managed to close above previous H4 candles close. Close is above resistance level, 1.09028 and it happened just after small H4 indecision candle.
This could mean we have possible break out from the small range where consolidation is. While daily trend line is just above we could see a little harder way up for the buyers.
EURUSD have different pip range on each trading session in a day and on each day in a week.
EURUSD Chart – Bullish Scenario
If the bulls manage to drive the price above daily trend line, first level is 1.09371 which could make small resistance for the price. That level did not act as a strong resistance in previous bull moves so we could see similar situation.
After the break above daily trend line and reaching 1.09371, we could see small pullback to daily trend line and possible bullish price action signal. If that happens it will be the sign to enter into buy order.
EURUSD Chart – Bearish Scenario
To see bears taking over we need to see price moving back in the previous range area. That will be the signal that the price have canceled bullish Pinbar we had yesterday. It will also mean bears have taken over and possible test for the break down from the wedge pattern.
After the break inside range area we need to see pullback with bearish price action signal if we want to plan enter into the trade.
Current situation is a little hard to clearly see where the price is heading because small consolidation. It is also inside wedge pattern which was broken last week and price returned back inside.
All these signals tells us the price is fighting to make a clear way in one direction.
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