EUR/USD Forecast: $1.11871 Is Still A Valid Support Target
Frano Grgić | Dec 05, 2021 06:07AM ET
Looking into analysis from two weeks ago, the EUR/USD price reached $1.11871 in the pip , and then bounced back up to first resistance at $1.13094. The $1.11871 level was strong support because the price had a similar reaction on that level in the past.
This week, EUR/USD price had one strong bullish move trying to break above the $1.13094 level, but what we can see the bulls could not move the price higher.
Small bearish candles are still inside a large bullish candle which tells me that the price could move higher. Wicks on this week’s candles tells me that the price has a hard time moving in one direction because there are sellers and buyers pushing the price in their direction.
For the coming week, we're expecting to see the price close at the $1.14000 level and then move down. The $1.14000 level is a confluence level of resistance which is visible on the chart.
We have horizontal resistance and a downtrend channel line which together will present hard resistance to break above. So, we can expect the price to reach $1.14000 and after a short break above return back below.
If that happens we can look for a bearish price action signal as an entry level at which time the target becomes $1.13094 because the bears are still not finished. From there we need to wait and see what will happen.
If the market forms more bearish candles around $1.13094 and $1.14000, then level $1.11871 is still in the game. But, if EUR/USD manages to break above $1.14000 and stays there for a few days, we could see market sentiment changing a little bit into bullish sentiment.
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