EURUSD technical daily analysis by GetKnowTrading

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Last two weeks the EURUSD price was in the range between $1.12350 on the bottom side and $1.13600 on the upper side.

The price closed the day $1.13466 which is the price above previous days candles close.

The next step is to move above $1.14000 which is now the first resistance.

And then the final resistance is $1.14748.

 

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Week started with the bearish candle and reached a $1.13094 resistance level.

And then on Friday the price moved strongly up and closed again the week above previous daily candles close.

The price is now in the channel where $1,14000 level is highly possible.

The $1.14748 level is the next strong resistance where we can expect the price to stall.

 

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The market broke out to the upside and reached a strong resistance level at $1.14748.

When the strong resistance level at $1.14748 was reached the price formed a small bearish Pin bar and on Friday bearish engulfing bar.

The price is now close to the confluence of resistance where the downtrend channel line and horizontal resistance line are crossing.

From there the next resistance to break is $1.16187 which is a well known level.

 

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The price has returned to previous low levels where the price range was holding the price for almost two months.

The price range is from $1.12645 to $1.13427.

To make the market more bearish I want to see more bearish signals around $1.14000 and downtrend channel resistance.

We could be for the next week in a price range where the price will test upper and lower limits.

 

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The price has dropped strongly after the first two days where we can see two bearish candles with large wicks.

Those wicks representing the price had a strong support at the $1.13094 level.

What we can expect in the following days is the price returning back to resistance level at $1.11871 which is now a confluence of resistance where horizontal support line and downtrend channel trend line are crossing.

 

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Starting from Monday we can see bulls have taken over and push the price back in the downtrend channel.

The price is close to the scenario where the market shifts from completely bearish market sentiment to bullish sentiment.

If the price manages to close above $1.14748 and then $1.15462 we can say the market is in the bullish sentiment.

 

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The price started the week with weak bearish candles where the candles closed close to support at $1.14000.

That support level is a confluence level of support where we have a downtrend channel line that supported the price from falling down.

We can expect the price to reach the support level at $1.13000 and from there we need to see what happens.

If the price created bullish candles or price action candles suggesting a move up, like bullish Pin bar or Engulfing bar, then we can say the bulls are trying to make a move upwards.

 

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As planned in the previous analysis the price reached $1.13000 and bounced back up.

Week started with price heading down and entering into the range area.

If the price makes a breakout to the upside it should close above $1.14000 to start looking for bullish entry levels.

This will mean the price has strength to break two resistance levels which could be indication for a breakout above $1.14748.

 

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In the previous two weeks the price is in bearish mode without any signs of recovering in the short term.

We had one bullish Pin bar on the support level at $1.10755 which was a confluence of support where horizontal support line and downtrend channel are crossing.

We can expect next week to see the price even lower than we have seen this week.

And the reason is the situation inside Europe where the Euro currency is losing its strength.

This is visible on the currency strength meter which shows EUR strength is very low. It shows the strength of the Euro that is losing strength against all other currencies.

When the price reaches $1.07825 we can expect the price to retrace and return back to $1.08846.

Even if the market is in a bearish scenario we could see a bullish reaction on the strong support level. If the price does not retrace from the $1.07825 we could see the price heading down to $1.06736 which is also strong support for the price.

 

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On Monday the price continued to move down and reached an area of supply close to $1.07825 and bounced up.
The move up was more retrace than a bounce because the price has reached all two levels I have mentioned, $1.07825 and $1.09860.


The reason is in the demand zone close to support $1.07825 which had lots of buyers waiting to enter into the market.
On the move up the price stopped on the confluence level of resistance where horizontal resistance $1.10755 and downtrend channel resistance line are crossing.

We can look on the chart and find levels with strong influence on the price and levels with weak influence.

Strong levels are $1.10755 on the upper side and $1.07825 on the lower side.
Weak levels are $1.09860 on the upper side and $1.08846 on the lower side.

The price is in the middle of the weak levels and since the market is in the bearish mode I am targeting lower levels this week.
The reason is the weak EUR currency and relatively strong U.S. dollar. This is confirmed by the currency strength meter below.

Source: Currency Strength Meter App

The final target is $1.07825 because it is the strongest support the price has in front of it.

 

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On Monday the price made a bullish candle with a large wick on the upper side next to $1.09860 resistance.

On Thursday we can see the price making new highs and closing the day above $1.10755 resistance level which is a strong signal.

Because the price has broken above a strong confluence of resistance and managed to close the day above we can prepare for a bullish market scenario.

If the price creates a bullish price action signal on the $1.09860 that will be a bullish signal for entering into the market.

The bulls goal is to break above $1.11871 to secure further move up because that is the level that was holding the price from falling.

 

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If we check previous analysis we can see I have mentioned several things.
First one is that we could see the price returning back down to $1.09860 which is support for the price. A
nd the price has done that.

The price formed a bullish Pin bar on Tuesday which was a signal to enter into the market.

How the previous week ended the price suggests further decline because each day has closed below the previous day.

The price is squeezing and we could see strong moves when the price broke outside.
On the down side we have a $1.09860 support level and then targeting $1.09000 level.

 

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Monday was the day when the market made a decision where it will move for the whole week.
We can see a bullish Pin bar formed on Monday on the $1.09860 support level.

Thursday ended as a bearish engulfing candle which closed below $1.10755 support level. That was a sign the price will move further down

We have a $1.09860 support level as the next support level where the price is heading

$1.09860 is the target for the next week which will be the decision level for the bears and bulls

 

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In the EURUSD previous analysis I have mentioned the price is targeting $1.09860 and the price done that.
And if the price breaks below that price we could see the price heading down to $1.08846 if the $1.09860 is broken.

On Friday the price broke below even more and almost reached $1.07825 which was mentioned in the previous analysis as a potential target if the price breaks below $1.08846

Because the candle on Friday closed below the previous day's candle close I am inclined to see the price even more down.

The final target for the price is at $1.07825 which is strong support for the price.

We can see currency strength meter shows USD strength weaker than previous week so this is a signal that we should take into consideration.

The Best Forex and Cryptocurrency Strength Meter - Currency Strength Meter - Forex and Crypto

currency strength meter is visual representation of currency strength compared to other currencies in a form of a bar graph or a line chart

currencystrengthmeter.app

 

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Video:

The price reached the target from previous analysis where I was talking about $1.07825.

Tuesday was the day when the price broke below $1.08846 which was a signal the price will move to the next support level, $1.07825

Since we have a strong demand zone around $1.07825 which made the price bounce up on Thursday we could see the price making a retrace from the current support level.

If the price manages to break below we should wait for the retest with daily price close below this level.

That will be the first step to move down to $1.06736 support level.

If we check currency strength meter we can see that USD gained on strength which suggest price should move more down .

 

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Previous week analysis talked about price having a hard time to break below $1.07825 after moving down to the demand zone.

After reaching the lower level of the demand zone price reversed and moved upwards touching the supply zone around $1.08846.

On Friday price followed bearish Pin bar signal and closed the day below previous daily candles.

The next target is 100 pips away, support level $1.06736.

$1.06736 is a slightly weaker support than $1.07825 was, so we can expect if the price continues to move strongly down to break this support more easily than it was this week.

 

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Previous week analysis talked about price moving down for around 100 pips and 300 pips in the long term.

The price has reached both targets in four days.

Next week we can expect some retrace for EURUSD after strong selling pressure last week.

Most likely the price will reach $1.06736 resistance or $1.07388 which should be the next target.

 

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Previous EURUSD forecast talked about price making a retrace to $1.06736 and the price retraced, but only to $1.06410.

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

Next week we need to wait for the price to break out from this range.

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

 

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The price made a breakout on Wednesday after testing the $1.05825 resistance three times.

After strong move, if we calculate pip range it is 177 pips move, price stopped and made a retrace above $1.04000 on Friday which we can add to Friday exit where traders cash out after a strong move and get out from trades before the weekend.

We can expect price moving higher close to $1.05000 resistance level and from there look for bearish price action signals.

Now is the time to wait for the retrace to higher levels and from there look for a sell signal.

 

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Just in two days the price returned and reached $1.04700.

On Friday we have a small retrace where traders have exited from trades and taken the profit from the strong move upwards.

With strong bullish candles and breaking some critical levels to the upside we can look for the price on higher levels.

The candle closed above previous candles body highs which is a good signal to look expect the price on the higher levels.