EUR/USD Forecast: $1.07825 As A Target
Frano Grgić | Mar 05, 2022 01:15AM ET
During the previous two weeks, the EURUSD price has been in bearish mode without any signs of recovering in the short term.
Only a few bullish candles have formed on the downtrend channel support line. But those candles were short lasting and did not have any support on the following candles.
We had one bullish Pin bar on the support level at $1.10755 which was a confluence of support, where the horizontal support line and downtrend channel were crossing. And when that confluence was broken the next day, the price fell 200 pips to the strong support level at $1.08846.
This support held the price in the past from falling further, and we have the same scenario now. The price reached the support level and then bounced back up with the price now between support and its resistance line.
This week, we can expect to see the price move even lower due to the situation inside Europe where the euro currency is losing its strength.
This is visible on the technical analysis to predict where the price could move.
Even if the market is bearish, we could see a bullish reaction on the strong support level. If the price does not retrace from $1.07825, we could see it heading down to $1.06736, which is also a strong support level.
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