EURUSD chart analysis
The market has changed its direction and price managed to break below uptrend channel. The price has broken even below first support $1.20000 which did not show too much strength.
What we can see in the chart is that the price has reached the $1.20000 level on Wednesday, but the price has stalled just for a few hours.
We can see a bearish candle that has a larger wick that tells us we had bulls fighting and defending this level. Their resistance was futile because sellers pushed the price below.
After breaking below we can see a clean situation where trades cash out from the market before the weekend.
Large candle on Friday shows how the price has returned its value above the support line just because many traders have closed their trades to take the profit from the market.
If there was no Friday maybe we would not see this bullish candle.
EURUSD Chart Forecast
For the next week I will look for bearish signals because the price has changed the direction by closing below $1.20800. This level was a strong support, but the price has changed the direction and now is looking for lower levels.
I have made a downtrend channel so we can see where the next support and resistance could be.
The price could find resistance at the confluence of resistance around $1.20800. From there the price could move down to $1.20000 to try breaking again down.
Below is the support that is also confluence of support around $1.19000 level. That level was a hard resistance in the past where the price could not break above in October and November last year.
I am now bearish oriented until the price reaches the $1.19000 level.
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 my blog https://getknowtrading.com/
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.