EURUSD Forecast
EURUSD chart analysis
Because of engulfing candle in the middle of the downtrend channel the setup from last week did not last for too long.
The whole week was bearish and only Friday was a small bullish candle. Bears have overtaken the market and for the last three weeks they are dominating.
After breaking below last week’s low the price formed a strong bearish candle which reached $1.16000 level. And then the price did not not stop right away, but it continued moving down to $1.15600. The price found support on the downtrend channel support line where the day close did not move below.
The price pulled back and the week ended on $1.15926 level which is close to previous support which now acts as a resistance.
EURUSD Chart Forecast
With $1.17200 and $1.16187 broken which were two strong support levels I want to see what the price will do next week.
Why?
Because the current break below $1.16187 could be a false break and the price can return above and make a reversal back to $1.17200.
If the bears are stronger I would like to see the price reach $1.17200 and then return back down. That move would make the market much more bearish than it is currently.
But we had a small bullish candle which could not close above the previous day’s open.
I am currently outside of the market until I see a better market constellation. I am waiting for the price to reach $1.17200 for a bearish move with a price action signal or $1.14748 for bullish move.
$1.14748 is the next support level where the price will find support and buyers waiting to buy and sellers to get out from trades.
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Disclaimer:
This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
