EUR/USD: $1.05825 is the Next Target
Frano Grgić | Nov 25, 2022 11:58PM ET
Previous EUR/USD forecast talked about $1.03920 that could be broken from the bulls, and that has happened. The price continued its move to $1.02669 on Monday, but since Tuesday, the price has been forming bullish candles.
The price reached the demand zone around $1.02669, where we have a confluence of support, and from there, the bulls pushed the price upwards. The sellers were not too strong to continue pushing the price down, which is visible on the chart by the candle's formation.
On Thursday, the price managed to close above $1.03920, which confirms a bull's strength. After the breakout on Friday, the price did not move strongly back down, which is not showing signs of a false breakout to the upside.
A small bullish pin bar on Friday right on the support level at $1.03920 shows an excellent bullish price action signal that suggests a further move to the upside.
The next level for the bulls is at $1.05087, where we have small daily resistance, but the final target is $1.05825, which is the weekly and monthly target.
This week the month ends, so we could see bulls in action, pushing the price to $1.05825 and, from there, returning down to $1.05087, testing as support.
The weekly market overview suggests $1.05825 as a target, and the daily time frame also suggests a stronger resistance for the price when the price is moving to the upside.
So, we have almost 200 pips free area to reach from the current level in the next week, and then the price could stop because there is stronger resistance in front.
On a monthly time frame, we can see that the price has a downtrend resistance line around $1.05825 which makes this supply zone an area where the sellers are waiting and where the bulls will move out from their trades.
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