EUR/USD Forecast: $1.03920 Is Targeted
Frano Grgić | Jun 11, 2022 01:01AM ET
Our previous EUR/USD forecast discussed why $1.06736 needed to hold if we wanted to see higher prices for EUR/USD. The price returned to $1.06736 and formed a bullish Pin bar on the daily time frame.
EUR/USD moved higher and reached the $1.07825 supply zone which was too hard to break. We can see a large wick on Thursday's daily candle where the price could not close the day above previous day's candle highs.
From there the price slid down and formed a strong bearish engulfing candle that closed the day below the previous weekly false breakout downwards.
The price continued moving down and on Friday, broke the $1.05825 support level without any problem. The price stopped at $1.05087 support comprising a support confluence with an uptrend support line and horizontal support line.
This coming week, we could see the price close to $1.05825 which will be a breakout confirmation. It is the first resistance and confluence of resistance with the uptrend support line that now comprises the resistance and horizontal resistance line.
The possible level for the price to reach is $1.05600, which is higher than that reached on the previous reversal attempts, after a sell off, so we can expect the same reaction and target.
From there the $1.05087 support could hold the price for a while, but when we look at the weekly time frame, we can see a strong bearish candle that shows the price will move down, making the next target price $1.03920.
However, before that, we'll need to wait until the price breaks the current support level. The current price level was on the low side of April's range, so we can expect the price to stall for a while.
Looking for a sell entry around $1.05825, as the resistance level is a nice spot. But best to wait for the price action sign that will signal the price will move down.
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